Binance’s BUSD Stablecoin Loses Market Share Amid SEC Action
Crypto traders are quickly moving away from Binance's stablecoin BUSD, leading to a 60% decrease in supply since mid-February.
BUSD‘s market capitalization has also fallen from just over $16 billion to around $10 billion, with its market share decreasing from around 20% last year to 7.3%.
The decrease in supply has resulted from the US Securities and Exchange Commission’s (SEC) action against the issuer of the Binance stablecoin, Paxos, classifying it as a security.
As a result, the New York-regulated crypto firm will no longer be creating BUSD. The outflow could affect Binance’s financial performance, as BUSD makes up a significant portion of the business, generating 90% of its revenue from transaction fees.
Additionally, Coinbase has delisted BUSD, although Binance CEO Changpeng Zhao said BUSD was never a significant part of the exchange’s business, and Binance intends to support as many other stablecoins as possible.
The Binance native coin, BNB, has also decreased by 4% over the past week.
In related news, Binance has launched Bicasso, an AI-powered NFT generator that created 10,000 NFTs in just 2.5 hours, with users eagerly testing out the generative art offering to mint computer-generated profile pictures.