It was only six days ago that blockchain infrastructure platform Paxos declared it would not be minting any more BUSD stabilizecoins, and since then, a staggering $2.86 billion worth of BUSD has been redeemed. Binance remains the most active BUSD token exchange, but the stablecoin still accounts for 10.7% of the cryptoeconomy’s $67.71 trillion in global trading volume over the past 24 hours.
BUSD supply down 17.77% in 6 days
Statistics show that a substantial quantity of BUSD has been redeemed in the last six days, with the supply dropping by 17.77% during that time period. Over the past 30 days, the BUSD supply has shrunk by 19.2%. On February 13, 2023, Paxos, the BUSD issuer, stated it will not be issuing new BUSD anytime soon.
Following the announcement, redemptions accelerated, with $290 million redeemed within eight hours. The total outstanding was $16.1 billion at the time of the announcement. As of February 19, 2023, there are approximately 13.238,824,118 BUSD currently in circulation. This reflects a reduction of 17.77%, representing 2.861,000,000 tokens that were taken out of the market.
Blockchain intelligence firm Nansen has been actively monitoring the Paxos Treasury Wallet, which sends tokens to a burn address, effectively erasing them from circulation. According to Nansen’s exchange portfolio tool, as of today, 10.9 billion BUSD are held. Currently, BUSD still accounts for $7.24 billion of the day’s $67.71 billion in global trading volume. It also accounts for 10.7% of the total.
Binance accounts for the majority of BUSD trading volume. The most popular BUSD trading pair is currently Tether (USDT). According to data from cryptocompare.com, 5.52% of the BUSD volume is on Binance. On Sunday, it was also paired alongside the Turkish lira. Although BUSD saw the most redemptions in the last 30 days, USDC saw 2.9% of its supply go over the same period.
In particular, the supply of the USDP, the other stablecoin issued by Paxos, has declined by 19.3%. Additionally, 11.3% of the circulating supply has been wiped out in less than 30 days. This has resulted in a significant decrease in pax gold (PAXG). In contrast, USDT has seen its supply increase by 5.8%, taking it to a market capitalization exceeding $70 billion.
