The Binance exchange announced last week that it plans to convert stablecoins USDC, USDP and TUSD into Binance USD (BUSD). A few days later, Binance’s stablecoin BUSD recorded an unexpected rise in market capitalization.
Binance’s BUSD: One of the Fastest Growing Cryptos on the Market!
According a tweet from Watcher.Guru on September 10, “Binance’s BUSD Stablecoin Surpassed $20 Billion Market Cap“. Binance USD (BUSD) is the sixth largest cryptocurrency by market capitalization, after bitcoin (BTC), ether (ETH), Tether (USDT), USD Coin (USDC), and BNB (BNB). It is also the third largest stablecoin by market cap, after Tether (USDT) and USD Coin (USDC).
That said, in three years, the stablecoin BUSD has grown from $1 billion to $20 billion of market capitalization. It managed to cross the $20 billion mark on Saturday. You should know that this dollar-backed stablecoin is currently used for trading, lending and payments. And the Binance exchange is developing different use cases for it with several partners.
One of the factors driving the rapid growth of the BUSD stablecoin is its availability on different blockchains. This crypto is issued not only on BNB Smart Chain and BNB Beacon Chain, but also on Ethereum. In addition, BUSD will soon be available on other blockchains including: Avalanche, Polygon and Tron.
On Saturday, the market capitalization of the stablecoin BUSD hit $20 billion from $1 billion three years earlier. That said, 4 million BUSD holders recently claimed that they prefer the stablecoin for two basic reasons. For one thing, BUSD has rather strict compliance standards. On the other hand, it offers relatively low transaction fees.
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