- The last time this happened was in June 2021.
- At the same time, the historical maximum of the indicator is $23.49 billion.
- In contrast, the capitalization of USDT and USDC is gradually growing
As of March 3, the market capitalization of BUSD has decreased to $9.66 billion. This is a new anti-record since June 2021. At the same time, at the peak, in November 2022, the indicator was equal to $23.49 billion.
Such statistics leads CoinGecko portal. This sharp decline is clearly visible on the chart:
For comparison, according to the same CoinGecko, the capitalization of USDT and USDC is $71.15 billion and $43.15 billion, respectively. For the first asset, the indicator continues to grow for the last three months, for the second – since mid-February.
Recall that on February 13 (the day before the sharp jump in USDC capitalization), Paxos officially announced that they would stop issuing new BUSD. The next day, a comment appeared on the situation from Circle, allegedly the company had long asked the authorities to deal with this issue.
Paxos is currently in talks with the Securities and Exchange Commission (SEC) to reach a consensus. Binance, in turn, burns the BUSD reserve in order to hold the value of the asset.
Another factor that influenced the situation was the recognition of the exchange in the lack of support for the stablecoin in 2021. This undermined the credibility of Binance and raised questions about the transparency of its accounting.
Also, do not forget that the exchange was at the epicenter of the scandal after the publication of Forbes, so BUSD is unlikely to be able to compete with the two largest stablecoins in the foreseeable future.