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.
READ MORE: Gary Gensler Should Be Barred From Voting on Crypto Enforcement Actions – Ripple Lawyer
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.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
