The Paxos Treasury has burnt 140,000,000 BUSD, knocking the Binance Dollar (BUSD) out of the top 10 by capitalization.

BUSD is quickly disappearing from the stablecoin market as Paxos is given the death penalty by US regulators. Although Paxos is devoted to maintaining the margin and converting BUSD to cash, the market share of this stablecoin is definitely dropping. Due to the inability to produce new coins and Paxos' continual burning of currencies, the current supply of this stablecoin is just about 10.98 billion tokens, a loss of over 31% over the past 30 days.

This directly reflects the stablecoin's position in terms of market capitalization. CoinGecko stated, BUSD was sixth in terms of market value prior to the incident but has now slid out of the top 10 and is now at position 11.The coin that gains the most from maintaining its unique status is Tether (USDT). The entire supply of USDT has climbed by around 5% during the last 30 days, DefiLlama said, increasing the stablecoin’s capitalisation to $70.9 billion. With a direct market share of 52.3% held by Tether, the stablecoin market cap is currently hovering around $135.4 billion.

The Dollar Coin (USDC) from Circle comes in second. In spite of accusations that it suggested Paxos-BUSD to New York officials, Circle has persisted lately. The USDC market capitalisation is now about 42.2 billion USD, representing 31.2% of the market. Another stablecoin that is rising in popularity is TrueUSD (TUSD). Binance appears to be moving its priority to TUSD after being unable to do business with BUSD, as Binance issued a huge quantity of stablecoin TUSD on February 17. The 30-day period saw a 16% increase in TUSD supply, bringing the capitalization to $1.1 billion. With a 0.8% market share at the moment, TrueUSD is ranked fifth, behind USDT, USDC, BUSD, and DAI.

The stablecoin war is anticipated to intensify soon as new competitors like Curve's crvUSD, Aave's GHO, and Fantom's fUSD join the fight.

#Paxos #Binance #BUSD #crypto2023

The founder of Binance, the largest #cryptocurrency exchange in the world, Changpeng Zhao, used Twitter earlier today to highlight the market conditions for stablecoins. The #Binance CEO began by highlighting the absurdity in Binance USD's (BUSD) winding down despite it being the “most fiat-backed stablecoin.”

Zhao's tweet said that #Paxos Trust Company, a stablecoin company governed by the New York Department of Financial Services (NYDFS) and audited by major accounting firms, was the issuer of BUSD. Nevertheless, when Paxos was instructed to stop creating the stablecoin last month, these reasons proved to be useless.

Changpeng Zhao emphasized that Tether USD (USDT), the largest stablecoin in the world, had been able to increase its market value by more than 9% despite the crackdown on Paxos and BUSD. The market capitalization of USDT has increased to a staggering $77 billion since the minting of #BUSD was stopped on February 21.

BUSD's market value, meanwhile, has experienced a severe decline, falling by more than 37% during the same time frame. The stablecoin had a $8.1 billion market valuation at the time of writing. Another stablecoin is failing as a result of the recent turbulence in the banking sector.

The founder of Binance called attention to USD Coin's (USDC) plight, which was made worse by Silicon Valley Bank's (SVB) collapse last week. For a brief while, the stablecoin was not tied to the US dollar and traded as low as 90 cents. According to Changpeng Zhao, bank closures are also lowering USDC's market capitalization. Since March 10 when SVB fell, the market cap of the stablecoin has decreased by more than 18%.

This news is republished from https://coinaquarium.io/

#USDC had a tough March when the US banking authorities intervened to take over Silicon Valley Bank (SVB). Furthermore, the loss of crypto-friendly banks has led in a decrease in the capitalization of Circle's stablecoin.

Circle, the issuer of USDC, announced that about $3.3 billion in cash reserves backing USDC are still held at Silicon Valley Bank, which was closed down by California banking authorities following a bank run.

Other, smaller-circulation stablecoins, such as #BUSD issued by #Paxos and crypto-backed stablecoin DAI produced by MakerDAO, also lost their pegs. Only USDT appears to benefit from the instability, briefly topping $1, most likely as a result of investors abandoning the depegged stablecoins.

The #crypto market has recovered dramatically in the weeks following the losses of several US banks as well as the Credit Suisse disaster, but the same cannot be said for USDC.

#Circle issued $600 million in USDC and redeemed $2.5 billion in USDC in the last 7 days, based upon official data, while circulation declined by around $1.9 billion.

As of March 30, the entire circulation of USDC was $32.6 billion, while the reserve was $32.8 billion, consisting of $4.4 billion in cash and $28.4 billion in short-term US treasury bonds.

However, the DeFi market has not suffered as a result. On March 11, Uniswap had $13.3 billion in volume, while Coinbase had $1.7 billion. This is what distinguishes DeFi platforms, which keep financial risk issues centralized.

There is also growing interest in researching potential remedies to stablecoin issues. Although USDC is still trading at the "stable" $1 peg, the reduction in circulation indicates that money has transferred to competing stablecoins such as USDT.

This news is republished from https://coinaquarium.io/