Binance’s Stablecoin BUSD Market Capitalization Slides 90% from Peak – Will it Affect Binance Exchange?

Binance
Ad Disclosure
Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. However, this potential compensation never influences our analysis, opinions, or reviews. Our editorial content is created independently of our marketing partnerships, and our ratings are based solely on our established evaluation criteria. Read More
Last updated:
Ad Disclosure
Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. However, this potential compensation never influences our analysis, opinions, or reviews. Our editorial content is created independently of our marketing partnerships, and our ratings are based solely on our established evaluation criteria. Read More
Author
Fredrik Vold
Author Categories
About Author

Last updated:
Why Trust Cryptonews
Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews
Ad DisclosureWe believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. Read more
Source: AdobeStock / Iryna Budanova

Binance USD (BUSD), the stablecoin issued by Paxos for crypto exchange Binance, has seen a decline in market capitalization of more than 90% from its peak last year.

According to CoinGecko data, BUSD’s market cap has plummeted from an all-time high of $23.5 billion, recorded on November 15, 2022. The current market cap stands at close to $2.1 billion, significantly lower than stablecoins like USDT and USDC, which have market caps of $84 billion and $25 billion, respectively.

BUSD market cap since January 2020. Source: CoinGecko

The decline in BUSD’s market cap can be partly attributed to regulatory actions taken against its issuer, the US-based company Paxos.

Earlier this year, both the Securities Exchange Commission (SEC) and the New York District of Financial Services (NYDFS) initiated regulatory actions against Paxos.

In response to these actions, Binance has indicated that it will move away from using BUSD on its platform, and encouraged users to convert their BUSD balances to FDUSD, a new stablecoin issued by Hong Kong-based First Digital Group.

Likely as a result of this move by Binance, the market share of First Digital USD (FDUSD) is on the rise, now boasting a market cap close to $470 million according to CoinGecko.

FDUSD market cap since July 2023. Source: CoinGecko

Binance users can trade BUSD for FDUSD without incurring any fees, and Binance plans to gradually reduce support for BUSD products by February 2024, as previously reported.

Despite the decline in BUSD’s market cap, the impact on Binance’s overall operations are not likely to be significant given that it is gradually phasing out support for BUSD in line with regulatory pressures.

More Articles

Blockchain News
Swedish Payments Group Klarna Sets Sights on Crypto Ahead of Public Listing
Shalini Nagarajan
Shalini Nagarajan
2025-02-10 07:30:29
Finance News
Consumer Financial Protection Bureau Funding and Activities Suspended by New Head
Ruholamin Haqshanas
Ruholamin Haqshanas
2025-02-10 06:53:26
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors