The market cap of Binance USD (BUSD) has been rising over the last 30 days. Thanks to Binance’s move to convert USDC, TUSD and USDP deposits to BUSD on the exchange.
Following the decision, last month the supply of BUSD exceeded $20 billion for the first time. It hit another milestone with 15.48% market share of the stablecoin market. Based on CoinMarketCap data – this is the highest ever.
USDC still controls about 28% of the stablecoin market. Its dominance as the second largest stablecoin by market cap is slowly waning. The supply of USDC has declined from $55 billion in July to the current supply of $43.93 billion.
Meanwhile, USDT remains the most dominant stablecoin in the region. It controls approximately 48.03% of the market, and its supply is over $68 billion.
BUSD’s recent progress underscores the rapid increase in the supply of stablecoins, which stood at less than $18 billion at the start of the year. This increase is largely due to Binance’s position as the largest exchange in the world. BUSD is also included in 22% of all trade volume by pair denomination.
The founder of FTX talks about the rise of BUSD
FTX founder Sam Bankman-Fried described BUSD’s current rise as the start of “the second great stablecoin war.” According to him, USDC and USDT emerged as the market leaders in 2018 in the first war.
SBF continued that this time is different as there are now positive interest rates, which means more revenue for stablecoins. He added that stablecoin issuers have learned the importance of always allowing redemptions to maintain the stability of their stablecoins.
Noting that FTX does not have a stablecoin, he added, “At this point, we are probably the biggest unaligned player in the stablecoin ecosystem. There are also Bybit, various blockchains, TradeFi, and market makers.”
USDC eyeing more growth
The USDC is eyeing new markets following Binance’s BUSD decision, as Coinbase seeks to make the stablecoin more accessible outside the United States. According to the exchange, its efforts are aimed at “increasing economic freedom in the world”.
Meanwhile, Circle CEO Jeremy Allaire Told Binance’s decision will increase USDC utility. He tweeted this last month, backing the view of Wintermute CEO Evgeny Gavoy, who believes it makes operational sense for Binance to delist other stablecoins.
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