Since Paxos announced that it would no longer mint the BUSD stablecoin, 4.98 BUSD stablecoins have been withdrawn from circulation. This has caused the value of the managed peg to fall below that of dogecoin, with a market capitalization of around $11.12 billion compared to $11.24 billion.
Redemption of BUSD: Nearly $5 Billion Stablecoins Withdrawn From Circulation In 12 Days
On February 13, 2023, Paxos made a statement that it would no longer be creating BUSD stablecoins. At that time there were 16.1 billion BUSD in circulation, however, now there is 11,129,348,406 BUSD in circulation. This means that in the 12 days since the redemption, 4.98 billion BUSD has been removed from the market.
On February 25, 2023, Binance’s Reserves reported that the crypto exchange had a USD value of $9.01 billion. According to CoinGecko, the majority of BUSD transactions were paired with the USDT stablecoin, with the Turkish lira accounting for 2.80% of all BUSD transactions on Saturday. At the moment, it is one of the most active BUSD trading pairs.
Currently, BUSD is worth 1,007% of the crypto system’s $1.1 trillion value. This is a significant drop in dominance in the past 12 days, and BUSD has officially been removed from the top ten positions this weekend. At the time of writing, BUSD has a market capitalization lower than DOGE (dogecoin) and higher than STETH (lido stake ether).
What are your thoughts on the $5 billion worth of BUSD stablecoins that were redeemed in the last 12 days? This caused the asset to drop out of the top ten rankings. Please share your opinions in the comments section below.
