Binance USD (or BUSD) is undeniably one of the most popular stablecoins of the moment. But with nearly 10 billion stablecoins being traded, the supply of BUSD has dropped significantly. It even reached its lowest level in two years.
Stablecoin market: What is BUSD?
BUSD is a fiat-backed stablecoin issued by Binance and Paxos. Binance is the largest exchange by trading volume. As for Paxos, it is another giant in the cryptocurrency universe.
BUSD is an ERC20 token built on the Ethereum blockchain. Each BUSD token is backed 1:1 with US dollars held in reserve.
The BUSD stablecoin was primarily set up to increase cryptocurrency adoption. Also, it is a more stable crypto alternative to traders as well as investors who want at all costs avoid volatility in the digital asset market.
BUSD supply hits lowest level since 2021
Before, the BUSD was among the most important stablecoins. But with 10 billion stablecoins traded, the supply of BUSD has dropped significantly. According an article from bitcoin.comit would have even reached his highest level in two years.
Indeed, the number of coins in circulation is decreasing. It sits below the 7 billion to 6.68 billion range. This equals the lowest number of BUSD in circulation recorded in April 2021.
That’s not all ! The supply of BUSD has also decreased by 19.8% over the past 30 days. On the day (February 13) that Paxos announced that the New York State Department of Financial Services (NYDFS) ordered the company to stop issuing BUSD, 16.1 billion BUSD tokens were still in circulation. But now the number of BUSD traded is around 9.42 billion.
The supply of BUSD is gradually decreasing. Does this presage a permanent withdrawal of this token from the stablecoin market? To be continued…
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service ofdaily and weekly so you don’t miss any of the essential Tremplin.io!