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In line with the CoinMarketCap tribute, Binance USD (BUSD) stablecoin, pegging to the dollar, we are holding the fourth month for market capitalization of the middle stablecoins after falling by over $1 billion over the remaining 30 days.
At the time of writing, the BUSD market cap is at $4.30 billion, down 29% from $5.54 billion on May 18. The stablecoin may trend to a lower price of the past year, if its market capitalization exceeded 23 billion dollars.
The decrease in the market capitalization of BUSD is going in parallel with the main trends on Binance following the dramatic collapse of FTX in the fall of 2022. In the chest of the past fate, it’s about those that Binance will become a target of the US Department of Justice, calling for a clear withdrawal of 3.6 billion dollars for a stretch of seven days. On the exchange, there was a great exchange of BUSD from market makers, including over 245 million dollars from Jump Finance.
The partnership between Binance and Paxos Trust created the BUSD stablecoin in spring 2019. Paxos releases the product and owns it, while Binance licenses its brand. For Paxos, the partnership has brought new wikis. It appears that in a fierce company, Wells’s announcement was made in the US Securities and Exchange Commission about those that Binance USD is an unregistered securities.
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The investigation led to the fact that the New York City Department of Financial Services (NYDFS) penalized Paxos for issuing BUSD. Together, these episodes significantly reduced the BUSD market share from $15.88 billion on February 12 to $8.38 billion on February 13.
Remaining blow by the head of the SEC poses against Binance 5 blacks for a nibit proposition of unregistered valuable papers. The US regulator has hung 13 calls against the exchange, including unregistered propositions and sales of BNB and BUSD tokens.
The market dominance of stablecoins pegged to the US dollar has seen the biggest change for the rest of the river: Tether (USDT) turned to its all-time high, just like most stablecoins in the fall.
Circle’s USD Coin (USDC) share of the market shrank from 34.88% in January 2022 to 23.05% in January 2023. The BUSD market share fell from 11.68% to 4.18% in the same period, while the Dai (DAI) share of the cryptocurrency market slid.
USDT as Tether, on the other side, picking up wraps. The dominance of the stablecoin on the market was 65.89% compared to 47.04% the same time. The same market capitalization rose to $83.1 billion, while the USDC market capitalization dropped from $55 billion to $29 billion.