BUSD

The supply of Binance USD (BUSD), the third-largest stablecoin, has decreased by 60% since the middle of February, and it is running out quickly. The market value of the stablecoin has fallen from just over $16 billion to around $10 billion at this time.Also, from almost 20% last year, its market share has decreased to 7.3% today. At $5 billion in total supply, MakerDAO&#39;s decentralized stablecoin DAI is the fourth biggest cryptocurrency. Tether&#39;s (USDT) market share has climbed to 52% as a result of investors&#39; reorientation.The U.S. Securities and Exchange Commission is to blame for the BUSD depreciation (SEC). The agency began action against Paxos, the Binance stablecoin&#39;s issuer, on February 13. While stablecoins have not yet been formally designated as securities, the federal regulator classed it as such in accordance with its standard operating procedure.As a consequence, the crypto company under New York regulation said that it will stop producing BUSD.The Financial Times of London reported on March 1 that experts believed the outflow might have a negative impact on Binance&#39;s financial performance.Ilan Solot, co-head of digital assets at Marex Solutions, predicted that this would negatively affect Binance&#39;s financial performance since BUSD accounts for a significant portion of the company&#39;s revenue.&#34;If Binance does in fact receive 90% of its income from transaction fees, then it is probable that a decline in total volumes would put some pressure on the exchange&#39;s revenue,&#34; said David Moreno Darocas, research head at data provider CryptoCompare.Coinbase also disclosed that it will delist BUSD since it &#34;no longer satisfied our listing requirements&#34; for stablecoins. Industry watchers claim that it was a covert strike on Binance as US officials step up their campaign against cryptocurrencies.Changpeng Zhao, CEO of Binance, said that BUSD was never a &#34;major business&#34; for the exchange. He also said Binance wanted to support as many alternative stablecoins as it could.BNB, a native currency of Binance, has lost 4% of its value over the previous week and fell below $300 on Thursday morning in Asian trade.

Binance USD (BUSD) Supply Slumped 60% Since SEC Enforcement Action

ItsBitcoinWorld

Other articles published on Mar 2, 2023

BlockFi Execs, Gemini Named in Proposed Lawsuit by a Disgruntled Investor

Notorious Monkey Drainer Crypto Scammer Says They’re ‘shutting down’

Spinamp, A Music NFT Use Case

Proshares focuses on Metaverse with its new ETF filing

Why Is Risk Management Crucial In Trading?

Weekly Rewards Breakdown: February

Join our free newsletter for daily crypto updates!