BUSD, Binance’s dollar-correlated stablecoin, has fallen precipitously in relation to its market capitalization since the Paxos announcement on February 13, depleting the market capitalization that was close to $16 billion, now it is located at approximately 8.80 billion dollars.
BUSD Market Cap in the Last Month – Source: CoinMarketCap
As has been reported, since February 13, Paxos issued a statement announcing the suspension of the issuance of BUSDsince then the effects on the stablecoin market have not been long in coming, every day that has passed has been an exit from the BUSD ecosystem by investors.
The data provided by CoinMarketCap shows how BUSD has lost close to 45% of its market capitalization, although these numbers are important, it is also necessary to indicate that BUSD is still within the top 10 cryptocurrencies.
In the same way, The DeFiLlama portal shows that BUSD continues to have third place among stablecoins in the decentralized finance ecosystem, in which Tether now has a 52% dominance, followed by USDC with 31% and followed by BUSD with barely 7.5% dominance of the market, also falling from its peak in November 2022 of having 16% of market dominance.
While Paxos has stopped issuing BUSD, the very fact that BUSD has maintained parity with the dollar, and this is thanks to the fact that the tokens issued up to the time of their issuance were largely backed by United States Treasury bonds, as well as money in Fiat deposits.which will have to be determined if even this will allow it to continue maintaining parity and presence at least in decentralized finance, or if, on the contrary, there will be a generalized migration to another stable currency of Paxos itself.
What is clear is that there has been an exit of the tokens, and It seems that as the days go by, it may become a trend for the stablecoin.
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