Eight days ago, Paxos announced that the BUSD stablecoin would not be issued by the company. Since then, the coin’s market capitalization has been on the decline as redemptions become more prevalent. Meanwhile, a Nansen researcher discovered that Binance, the largest cryptocurrency exchange according to trade volume, had increased its USDC holdings by $1.5 million in seven days.
Nansen Researcher Finds Binance Stacking USDC
According to Nansen data journalist Martin Lee, the amount of USDC (dollar coin) being held on Binance has been steadily rising this week. “Interesting to see the amount of USDC on Binance increase so much since the BUSD news,” Lee tweeted on Tuesday. Lee further elaborated that Binance USDC has seen a $1.5 billion increase in the past seven days.
He is also known for his prediction that the supply of Tether (USDT), would increase. Binance holds more USDC than USDT “since USDC cannot be traded” on Binance. On September 5, 2022, Binance delisted USDC (USDC) trading pairs and automatically converted customer balances into BUSD. Two weeks later, Wazirx followed Binance’s lead, delisting USDC and any other stablecoins can be used to automatically convert balances into BUSD.
On Feb. 19, Bitcoin.com News reported that the market was unable to find nearly 3 billion BUSD. The current amount is 3.55 billion. Paxos revealed that it is unable to mint USD. The Paxos-managed stablecoin remains the third-largest stablecoin in terms of market capitalization until it falls below DAI’s $5 billion market valuation. BUSD could very soon be knocked off the top ten most distinguished crypto assets by market capitalization when it becomes a prime 10 asset.
Nansen’s wallet viewer revealed that the country had $1.8 billion USDC in Binance’s wallets, making it one of the most prominent wallets right now and the largest in 90 days. At the time of writing, at 2:00 PM (ET) on February 21, 2023, there was $1.821 trillion USDC in the Binance wallet. It’s a valuable point to remember that Nansen’s wallet viewer is limited to ERC20-based balances. Binance also holds over 100 million Tether (USDT) in the same wallets, 5.34 million DAI, and 79.24 million trueusds (TUSD).
What do you think of Binance storing USDC as a hedge against the crackdown
