This article briefly:
•Two well-known stablecoins, BUSD and USDC, have had different fates due to regulatory scrutiny.
•Circle’s USDC experienced its first supply increase in over 10 months, marking a significant shift.
•On the other hand, Binance’s BUSD is facing a sharp drop as its supply is close to being exhausted.
USD Coin (USDC) and Binance USD (BUSD) have had very different fates. USDC has experienced a significant uptrend, rebounding from the U.S. banking crisis, while BUSD is facing a severe supply shortage.
The disparity highlights a shift within the stablecoin market, particularly as it has been impacted by the regulatory challenges it has encountered over the past year.
USDC Market Cap Soars
USDC has seen a massive surge in market value at the start of the new year, driven by favorable market conditions. The latest data shows that its market cap has grown by an impressive over $1.6 billion. This marks a 6.6% increase, bringing the total market cap to $26.15 billion.
Cryptocurrency analytics platform CCData reported that USDC’s market cap surged for the second month in a row, confirming the positive trend. Prior to this, the stablecoin had fallen for 11 consecutive months, with its market cap briefly surpassing the $25 billion milestone in January.
Several factors have contributed to this upward trajectory. Notably, Circle announced its intention to go public in a recent filing with the U.S. Securities and Exchange Commission (SEC). This disclosure has played a role in solidifying USDC’s market position.
Additionally, there has been a significant surge in USDC transfer volume, especially on the Solana blockchain. Data from Artemis shows that Solana-based USDC played a major role in driving the stablecoin to its highest transfer volume levels in more than a year.
Despite these positive developments, USDC’s current supply remains well below its all-time high of $45 billion.
BUSD falls below $100 million
In contrast, the supply of Binance USD (BUSD), the stablecoin backed by Binance, has dropped significantly, reaching an all-time low of less than $100 million.
Challenges for the stablecoin arose last year when the SEC issued a Wells Notice to BUSD issuer Paxos, halting the creation of additional units of the digital asset. The situation escalated further when the federal agency classified the stablecoin as a security in its legal action against Binance.
In response to these regulatory developments, Binance initiated a strategic shift to encourage users to transition from BUSD to alternative stablecoins such as FDUSD. In addition, it discontinued several services related to BUSD, causing the total supply to decrease from a peak of over $20 billion to less than $100 million in just one year. #稳定币 #BUSD
