An aggressive BUSD expansion – The market share of Binance USD (BUSD) has reached a historical highless than a month after Binance decided to pull a lever to boost the growth of its stablecoin.
A monstrous rise in BUSD performance
With the backing of a major crypto exchange, the results are not surprising. According to recent data from The Block, on October 21, the market share of the BUSD reached a historical record at 15.48%out of the $140 billion total stablecoin market supply.
The total supply of BUSD, meanwhile, recorded a augmentation over $6 billion since the beginning of the year, then approaching $22 billion.
In September this year, Binance announced that all USD Coin (USDC), USDP and TrueUSD deposits on its platform will be automatically converted into BUSD. The strategy seems to have paid off and substantially increased the market share of BUSD in the stablecoin market.
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The second great stablecoin war is on
In his October 23 tweet, the CEO of FTX, Sam Bankman-Friedalso mentioned the impact of this decision by Binance to convert the USD Coin into BUSD on the distribution of stablecoin offers.
He said the current changes mark the beginning of the second great war stablecoins, while the first, which took place in 2018, ended with the victory of a Tether (USDT) and a USD Coin (USDC) which outperformed TUSD, USDP and GUSD.
Since Tether and theUSD Coin retained their place of leaders in terms of market capitalization, in the stablecoin market. However, the BUSD is the one who recorded the strongest growth in terms of market share since 2020.
William Clemente, founder of research and trading firm Reflexivity Research, pointed to the fact that Tether’s market share has fallen from 88% to 48% since 2020, while USD Coin’s has tripled, from 10 to 32 %, and that of Binance USD has been multiplied by 30passant from 0.5 to 15%.
By benefiting from the Binance growth at the global level, the BUSD could thus upset the current ranking in the medium and long term. And although it is jostled by its competitors, the Tetherwhich continues to reign over the stablecoin market, nevertheless does not let itself be done with an upcoming expansion in Brazil.
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