Binance’s USDC Holdings Surge by 292% in Just 3 Weeks
According to Glassnode data, Binance has acquired approximately $3.8 billion worth of USDC in the past three weeks. Binance's USDC holdings stand at 5.1 billion, a 292% increase compared to three weeks ago.
Binance began purchasing USDC in February 2021 and has accumulated over 2.4 billion USDC to date. With the exception of a short period from September 2022 to January 2023, during which Binance’s USDC reserves fell below 800 million, the exchange has maintained its USDC levels until recently.
The chart below depicts Binance’s USDC balance since the beginning of 2020.
Over the last three weeks, Binance’s USDC holdings have experienced a significant increase, rising from 1.3 billion to 5.1 billion, which amounts to a 292% increase. In September 2022, Binance had only 500 million USDC, indicating that the current levels represent a 920% increase from the September levels.
Binance’s recent actions are also evident in the chart below, which shows the amount of USDC held by exchanges. The turquoise area depicts Binance’s USDC holdings and reflects the recent 292% increase. Since January 2021, Binance has had the largest USDC pool compared to other exchanges.
The reason behind Binance’s acquisition of USDC is that the exchange’s BUSD reserves shrank significantly in February after the SEC issued a notice to stop BUSD minting on Feb. 13.
On Feb. 17, Binance’s CEO Changpeng Zhao (CZ) noted the change and highlighted that the stablecoin landscape was evolving to be dominated by Tether (USDT). From March 3, USDT now dominates over 55% of the stablecoin market.