Lately, Binance US continues to strengthen its ecosystem with its stablecoin Binance USD (BUSD). The biggest crypto exchange seems to be prioritizing its own stablecoin. This situation could crowd out other currencies like USDC, USDP, TUSD. The company then announced the automatic conversion of these stablecoins into BUSD. Nevertheless, Binance now allows USDC deposits and withdrawals on the Tron, Solana, Avalanche, and Polygon networks. We can only see the competition between stablecoins starting to gain momentum.
Binance: USDC available on the largest blockchain networks
With nearly $68 billion in USDT tokens, Tether USDT is establishing itself as the leader among stablecoins. It is already used on many blockchain networks such as Ethereum, Solana, Tron, Avalanche, Polygon and EOS. It is also available on Tezos Networks, Bitcoin Cash SLP Protocol, Liquid Network, Kusama, Omni, and Statemine.
Now it’s USDC’s turn to be used on major blockchain networks like Tron, Solana, Avalance, and Polygon thanks to Binance. The latter also makes it possible to speed up transactions at relatively low costs. USD Coin is positioned as the biggest competitor to USDT with over $50 billion in USDC tokens. Sitting in just second place in the stablecoin market, USDC could overtake the giant. But first it would have to maintain its place against Binance’s stablecoin (BUSD), which is gaining popularity.
An escalating stablecoin war
Critics abound on the operations undertaken by the largest crypto platform. Indeed, Binance halted trading services on True USD (TUSD), USDP stablecoin (USDP), and USD Coin (USDC) in September. She said these stablecoins will be converted into BUSD with the aim of improving liquidity and capital efficiency for consumers. This situation is a way to accelerate the popularity of BUSD by competing with other stablecoins. Especially since Binance’s stablecoin is already compatible with the Avalanche and Polygon networks.
Additionally, WazirX, an Indian crypto exchange owned by Binance, announced the outright delisting of USDP, USDC, and TUSD stablecoins in favor of BUSD. With 21 billion BUSD tokens in circulation, BUSD is behind USDC. The stablecoin war therefore seems to be intensifying within the market. It is increasingly attracting the greed of major players in the crypto sector.
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