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 Editor-in-Chief of Coinspress and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
