BUSD

Shiba Inu

FOMO

BUSD is suffering from a market capitalization drop amid regulatory concerns.
Although still the world's third-biggest stablecoin by market cap, <a href="https://www.blockhead.co/tag/busd/">BUSD</a> has taken a beating recently.
Towards the end of March, BUSD' held a market cap of over $8 billion. Since then, its market cap has fallen around 20% to $6.4 billion. Over the past week, its size has dropped 4%.
<figure class="kg-card kg-image-card">
 <img src="https://www.blockhead.co/content/images/2023/04/Screenshot-2023-04-25-at-14.53.58.png" class="kg-image" alt="BUSD Market Cap is Dwindling – Here's Why" loading="lazy" width="795" height="487" srcset="https://www.blockhead.co/content/images/size/w600/2023/04/Screenshot-2023-04-25-at-14.53.58.png 600w, https://www.blockhead.co/content/images/2023/04/Screenshot-2023-04-25-at-14.53.58.png 795w" sizes="(min-width: 720px) 720px">
</figure>
BUSD's market cap reached its all-time high in November 2022, peaking at over $23 billion. 
<figure class="kg-card kg-image-card">
 <img src="https://www.blockhead.co/content/images/2023/04/Screenshot-2023-04-25-at-15.01.52.png" class="kg-image" alt="BUSD Market Cap is Dwindling – Here's Why" loading="lazy" width="792" height="490" srcset="https://www.blockhead.co/content/images/size/w600/2023/04/Screenshot-2023-04-25-at-15.01.52.png 600w, https://www.blockhead.co/content/images/2023/04/Screenshot-2023-04-25-at-15.01.52.png 792w" sizes="(min-width: 720px) 720px">
</figure>
Between January and March 2023, BUSD's market dominance fell from 35% to 25%, according to Bankless.
<figure class="kg-card kg-image-card kg-card-hascaption">
 <img src="https://www.blockhead.co/content/images/2023/04/Screenshot-2023-04-25-at-15.05.22.png" class="kg-image" alt="BUSD Market Cap is Dwindling – Here's Why" loading="lazy" width="754" height="674" srcset="https://www.blockhead.co/content/images/size/w600/2023/04/Screenshot-2023-04-25-at-15.05.22.png 600w, https://www.blockhead.co/content/images/2023/04/Screenshot-2023-04-25-at-15.05.22.png 754w" sizes="(min-width: 720px) 720px">
 <figcaption>
 Image credit: <a href="https://www.banklesstimes.com/news/2023/04/24/busd-challenges-usdt-dominance-as-binances-preferred-stablecoin-but-falls-to-25percent-market-share-amid-regulatory-action/?ref=blockhead.co">Bankless</a>
 </figcaption>
</figure>
BUSD is now sitting in 13th place among all cryptocurrencies by market cap, behind the likes of altcoins XRP, MATIC, DOT and even DOGE. Shiba Inu also briefly <a href="https://beincrypto.com/shib-market-cap-overtakes-binance-usd/?ref=blockhead.co">overtook</a> BUSD last week when the meme coin's market cap hit $6.8 billion.
<h2 id="regulation-and-paxos">Regulation and Paxos</h2>
Regulation uncertainty is believed to be the catalyst for BUSD's declining performance.
During its glory period, <a href="blockhead.co/tag/binance">Binance</a> enjoyed and wielded its position of power. In September 2022, Binance boldly removed USDC from its platform and forcibly converted positions holding the rival stablecoin into BUSD. USDP and TUSD positions met the same fate on the exchange too.
Read more: <a href="https://www.blockhead.co/2022/09/06/binance-forces-usdc-busd-conversion-removes-user-choice/">Binance Forces USDC-BUSD Conversion, Removes User Choice</a>
Fast forward six months and the likes of <a href="blockhead.co/tag/coinbase">Coinbase</a> were seen delisting BUSD due to concerns surrounding crypto broker and BUSD issuer <a href="https://www.blockhead.co/2023/02/23/paxos-ends-binance-relationship-holds-talks-with-sec/blockhead.co/tag/paxos">Paxos</a>.
“Our determination to suspend trading for BUSD is based on our own internal monitoring and review processes,” a Coinbase spokesperson said in March. 
“When reviewing BUSD, we determined that it no longer met our listing standards and will be suspended.”
Read more: <a href="https://www.blockhead.co/2023/03/01/coinbase-delists-binance-usd-amid-troubles-at-paxos/">Coinbase Delists Binance USD Amid Troubles at Paxos</a>
Coinbase's move followed Paxos <a href="https://www.blockhead.co/2023/02/23/paxos-ends-binance-relationship-holds-talks-with-sec/">ending of its relationship with Binance</a>. “The market has evolved and the Binance relationship no longer aligns with our current strategic priorities,” Charles Cascarilla, Paxos CEO, said in an internal <a href="https://www.axios.com/2023/02/21/stablecoin-issuer-paxos-severs-relationship-with-binance?ref=blockhead.co">email</a>.
Cascarilla claimed the decision was unrelated to pressure from the New York Department of Financial Services (NYDFS) and the SEC, which have recently pried into Paxos's relationship with the exchange.
Paxos had been ordered to stop issuing BUSD due to "unresolved issues."
Read more: <a href="https://www.blockhead.co/2023/02/14/paxos-told-to-stop-issuing-busd-binance-says-funds-are-safu/">Paxos Told to Stop Issuing BUSD, Binance Says Funds "SAFU"</a>
BUSD's fate currently hangs in the balance as the SEC settles its action against Paxos.
<hr>
The world of Web3 can be quite a whirlwind. Whether it’s crypto news in Singapore, South East Asia or even across the globe, we understand how busy the industry is keeping you, so we kindly send out three newsletters each week:
<ul>
 <li><a href="https://blockhead.co/tag/blockbeat?ref=blockhead" rel="noopener noreferrer">BlockBeat</a> for a wrap-up of the week’s digital assets news</li>
 <li><a href="https://blockhead.co/tag/blockhead-brief?ref=blockhead" rel="noopener noreferrer">Blockhead Brief</a> for weekend happenings as well as what to look forward to in the week ahead</li>
 <li><a href="https://www.blockhead.co/tag/business-bulletin/" rel="noopener noreferrer">Business Bulletin</a> for macroeconomic updates and industry developments.</li>
</ul>
To avoid FOMO and access member-only features, click <a href="https://www.blockhead.co/#/portal/" rel="noopener noreferrer">here</a> to subscribe for FREE.

BUSD Market Cap is Dwindling – Here's Why

目录

Blockhead

发布于 2023年4月25日的其他文章

Transfer NFTs from MetaMask in a Few Easy Steps - Learn How Now!

Animoca Brands and Lympo partner with UFC Champion Rose Namajunas on digital sports memorabilia c...

New Rules to Ease Fed Oversight of Nonbank Institutions

Stellar erobert Milliardenmarkt mit ersten US-Investmentfonds auf öffentlicher Blockchain

Ethereum Price Analysis 25/04: Bearish Dominance Eases with Rising Trading Volume

Here are Bitcoin’s biggest contributors and their impact on the 2023 crypto industry

订阅我们免费的电子期刊，获取每日最新加密领域动态！