This week saw a change in the stablecoin landscape as the once-fourth-largest stablecoin, binance usd (BUSD), gave up its position. This shift results from the cryptocurrency asset's supply falling below the 3 billion threshold. In a remarkable turn of events, the stablecoin trueusd (TUSD) saw its supply jump from 2.9 billion to 3.438 billion in just three days. The dollar-pegged coin BUSD's eventual phase-out plan was announced by Binance not long before these developments took place.
BUSD Supply Sinks Below the 3 Billion Threshold
The supply of Binance USD, often known as BUSD or BUSD, has decreased to 2.844 billion as of September 3, 2023, according to statistics from etherscan. The once-dominant Paxos stablecoin, which was once the fourth-largest stablecoin, has fallen to fifth place among the top 10 dollar-pegged currencies according to market valuation. Three days ago, Binance said that it would progressively phase down BUSD and stop offering trading pairs for the stablecoin as a result of US regulators ordering Paxos to stop issuing tokens.
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| On September 3, 2023, BUSD will be the fifth-largest stablecoin |
While the supply of BUSD decreased, the supply of TUSD and FDUSD increased over the previous seven days. Notably, FDUSD experienced a 40% increase in supply last month, while nine out of the top ten stablecoins saw supply decreases. The supply of TUSD decreased by 3.8% in August, but it increased by 18.55% within three days, from 2.9 billion to the current 3.438 billion TUSD, from August 31 to September 3. According to Nansen Analytics, Binance currently possesses about 2.782 billion TUSD.
Additionally, the first digital usd (FDUSD) stablecoin's supply was 327 million on August 31, 2023; according to data from etherscan, it is presently 382,548,919 FDUSD. According to data from September 3 on Etherscan, Binance has roughly 99.4397% of the FDUSD supply. Even the top six wallets, which together account for 84.2% of the whole BUSD supply, fall under this category. All three of the aforementioned stablecoins—BUSD, TUSD, and FDUSD—are largely controlled by Binance.
The combined value of the three stablecoin reserves held by the cryptocurrency exchange is $6.664 billion. Additionally, Nansen statistics show that Binance currently controls 18.10 billion of the 82.89 billion tether (USDT) that are currently in circulation. This suggests that 21.83% of the available supply of tether is under the hands of Binance, the crypto asset with the highest trade volume. Four of these stablecoins together account for $24.764 billion of Binance's $56.04 billion in cryptocurrency reserves, or 44.18% of the trading platform's total asset balance.
What do you think about BUSD's supply falling below 3 billion while the supplies of the other two stablecoins increased? Post your ideas and viewpoints on this topic in the comments area below.