Bitcoin

According to a recently released data, the market capitalization of the stablecoins in the sector dropped to its lowest level since September 2021 in February, falling by 0.68% to $136 billion, marking the eleventh consecutive monthly decline.The entire market share of stablecoins in the industry is currently lying at 11.4%, down from roughly 12.31% in January, according to CryptoCompare&#39;s most recent Stablecoins &amp; CBDCs Report. Since April 2022, this is their lowest market share.The study continues that the reduction emphasizes &#34;the recent surge in the prices of crypto assets and the shrinking stablecoin market cap.&#34;The New York Department of Financial Services (NYDFS) has instructed Paxos to stop creating Binance USD (BUSD), a stablecoin, according to the report, and its market capitalization has dropped 18% to $13.2 billion as a result.The U.S. Securities and Exchange Commission (SEC), which notifies entities of potential enforcement action, also informed Paxos in a letter known as a &#34;Wells notice&#34; that the agency intends to sue the company for breaking investor protection laws.Binance Dollar (BUSD), according to the notice, is an unregistered security. BUSD is a Paxos stablecoin with the Binance name that is traded on a number of exchanges, including Paxos&#39; itBit platform.In the meantime, the market capitalization of USDT has grown by $2 billion, according to the analysis from CryptoCompare. The number and a 676% increase in BUSD/USDT trading volume on February 13 indicate that a significant portion of the BUSD has been exchanged for USDT on the exchange.According to the research, the stablecoin for USDT had a market share gain in February from 48.7% to 51.7%, which was the highest level since October 2021.Stablecoins from Paxos experienced considerable withdrawals after the SEC&#39;s action against BUSD. Because to this, the market caps of BinanceUSD (BUSD) and Pax Dollar (USDP) fell by 15.8% and 24.37%, respectively, to $13.3 billion and $729 million. As a result, USDD beat USDP to become the seventh-largest stablecoin, and in February, its market cap increased by 0.57% to $724 million.Tether&#39;s USDT and TrueUSD (TUSD), whose market capitalization grew by 3.85% and 2.31% to $70.4 billion and $968 million, respectively, may have profited from the collapse in the BUSD. The research notes that USD Coin&#39;s (USDC) market valuation decreased by 1.76% to $41.4 billion.

Stablecoins’ Market Cap Has Been Falling for Nearly a Year, Report Reveals

ItsBitcoinWorld

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