2024

BUSD

USDC

<ul>
 <li><em>Binance’s BUSD faced a drastic market cap decline, falling below 1 billion in supply.</em></li>
 <li><em>BUSD fell by 95% from its peak while the BNB network’s activity and revenue took a hit.</em></li>
</ul>
<p><a href="https://ambcrypto.com/search/Binance" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">Binance [BNB]</a> has had a very troubling 2023, with many trials rocking both the exchange and the network. Even after the new year began, many of these troubles persisted.</p>
<h4>A slow decline in interest for BUSD</h4>
<p>A notable setback was witnessed in Binance’s stablecoin sector on the 7th of January, exemplified by Binance’s BUSD experiencing a drastic market cap decline.</p>
<p>BUSD’s supply fell below 1 billion during this time frame, plummeting by 95% from its peak of 23.45 billion. At press time,&nbsp;BUSD stood as the sixth-largest stablecoin, trailing behind FDUSD, USDT, USDC and DAI.</p>
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 <p lang="en" dir="ltr">Binance's BUSD Falls below 1B Supply. At its peak, it has 23.45B supply (Dropped 95%)</p>
 <p>It is now the 6th largest stablecoin behind FDUSD</p>
 <p>For Stablecoins to challenge USDC/USDT, there are 3 main factors imo:</p>
 <p>1. CEXs Integration <br>2. DeFi Integration<br>3. Remittances &amp; Payments <a href="https://t.co/JTUXfaPpVL" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/JTUXfaPpVL</a></p>
 <p>— Tom Wan (@tomwanhh) <a href="https://twitter.com/tomwanhh/status/1744013198141874663?ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">January 7, 2024</a></p>
</blockquote>
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p>
<p>&nbsp;</p>
<h4>State of the network</h4>
<p>The repercussions extended to BNB’s network dynamics, where activity nosedived by 66.4% in the past week.</p>
<p>Simultaneously, network revenue witnessed a 13.7% decline over the same period, indicating a concerning trend in user engagement and economic throughput.</p>
<div id="attachment_362574" style="width: 100%" class="wp-caption aligncenter"><a href="https://statics.ambcrypto.com/wp-content/uploads/2024/01/Screenshot-2024-01-08-at-11.07.33 AM.png" data-wpel-link="internal" rel="noopener noreferrer nofollow"><img aria-describedby="caption-attachment-362574" decoding="async" class="size-full wp-image-362574" src="https://statics.ambcrypto.com/wp-content/uploads/2024/01/Screenshot-2024-01-08-at-11.07.33 AM.png" alt="" width="2178" height="1106" srcset="https://statics.ambcrypto.com/wp-content/uploads/2024/01/Screenshot-2024-01-08-at-11.07.33 AM.png 2178w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/Screenshot-2024-01-08-at-11.07.33 AM-300x152.png 300w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/Screenshot-2024-01-08-at-11.07.33 AM-1024x520.png 1024w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/Screenshot-2024-01-08-at-11.07.33 AM-768x390.png 768w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/Screenshot-2024-01-08-at-11.07.33 AM-1536x780.png 1536w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/Screenshot-2024-01-08-at-11.07.33 AM-2048x1040.png 2048w" sizes="(max-width: 2178px) 100vw, 2178px"></a>
 <p id="caption-attachment-362574" class="wp-caption-text">Source: token terminal</p>
</div>
<h4>Legal challenges and price movement</h4>
<p>Adding to Binance’s challenges, <a href="https://ambcrypto.com/heres-how-bnb-reacted-to-binances-settlement-with-cftc/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">legal complexities</a> emerged.</p>
<p>The U.S. Commodity Futures Trading Commission (CFTC) finalized a settlement with Binance’s CEO, Changpeng Zhao (CZ), imposing a $150 million civil penalty on CZ and mandating Binance to disgorge $1.35 billion in ill-gotten fees.</p>
<p>Former Chief Compliance Officer Samuel Lim faced a $1.5 million penalty. The court also directed the establishment of a corporate governance structure, reinforcing regulatory scrutiny.</p>
<p>Despite the legal hurdles and FUD, new projects continued to launch on BNB, showcasing resilience within the ecosystem.</p>
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 <p lang="en" dir="ltr">New projects on BNB Chain this week <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f3c6.png" alt="🏆" class="wp-smiley" style="height: 1em; max-height: 1em;"><a href="https://t.co/HYyVCTR52W" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">https://t.co/HYyVCTR52W</a></p>
 <p>— BNB Chain (@BNBCHAIN) <a href="https://twitter.com/BNBCHAIN/status/1744011004953198996?ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">January 7, 2024</a></p>
</blockquote>
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p>
<p style="text-align: center;">How much are&nbsp;<a href="https://ambcrypto.com/convert/1-bnb-to-usd" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">1,10,100 BNBs worth today</a>?</p>
<p>However, BNB’s market response remained adverse, trading at $295.72 with a 4.17% decline in the last 24 hours. Trading volume also experienced a recent downturn.</p>
<p>As Binance navigates through these challenges, the stability of its stablecoin, network engagement, and legal resolution will significantly shape its trajectory in 2024.</p>
<div id="attachment_362575" style="width: 100%" class="wp-caption aligncenter"><a href="https://statics.ambcrypto.com/wp-content/uploads/2024/01/BNB-BNB-11.08.34-08-Jan-2024.png" data-wpel-link="internal" rel="noopener noreferrer nofollow"><img aria-describedby="caption-attachment-362575" decoding="async" class="size-full wp-image-362575" src="https://statics.ambcrypto.com/wp-content/uploads/2024/01/BNB-BNB-11.08.34-08-Jan-2024.png" alt="" width="3840" height="1300" srcset="https://statics.ambcrypto.com/wp-content/uploads/2024/01/BNB-BNB-11.08.34-08-Jan-2024.png 2560w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/BNB-BNB-11.08.34-08-Jan-2024-300x102.png 300w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/BNB-BNB-11.08.34-08-Jan-2024-1024x347.png 1024w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/BNB-BNB-11.08.34-08-Jan-2024-768x260.png 768w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/BNB-BNB-11.08.34-08-Jan-2024-1536x520.png 1536w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/BNB-BNB-11.08.34-08-Jan-2024-2048x693.png 2048w" sizes="(max-width: 3840px) 100vw, 3840px"></a>
 <p id="caption-attachment-362575" class="wp-caption-text">Source: Santiment</p>
</div>

Binance’s problems pile on as BUSD loses market cap

AMBCrypto

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