Binance BUSD Trading Volume Skyrockets By 70%; Here’s Why
Binance USD (BUSD), the world’s third largest stablecoin’s 24 hour trading volume recorded a whooping surge of 70% on Tuesday. This jump came in accordance with the recent big announcement made by the Binance.
BUSD to replace USDC?
In a post, Binance announced that it introducing BUSD Auto conversion for users’ existing balances on the platform. It added that all the new deposits of USDC, USDP and TUSD stablecoin will get converted.
It mentioned that this is done in order to enhance liquidity and capital efficiency for customers. However, this will come into effect on 29th September 2022. The conversion ratio is fixed at 1:1. After this procedure, users will be able to trade with a consolidated BUSD balance over the platform.
However, the process will not affect any kind of withdrawal, Binance added. This sums up that almost all functions related to USDC, such as spot, leverage, and payment will be stopped by the exchange.
Since the announcement, BUSD’s 24 hour trading volume has surged by 70%. It now stands at $8.4 billion. BUSD holds a market capitalization of around $19.4 billion. However, USDC’s 24 hour trading volume has also jumped by 20%. It now stands at $7.06 billion.
Binance in the release mentioned that all the users will be able to see their convertered balance within 24 hours of the process completion.
USDC to beat USDT
Binance’s declaration can be considered a major attack on USDC in order to increase BUSD’s utility and coverage. USDC is the second largest stablecoin with a market cap of over $51.8 billion.
Earlier, Coingape reported that USDC is running close to dethroning USDT as the largest stablecoin. After the collapse of Terra’s stablecoin (TUSD), the chances of USDC overtaking increased by miles. The collapse led to a major gap to be filled. However, USDC is considered the best backed stablecoin.
- Ripple Eyes Tokenization and Stablecoins in XRP Ledger Institutional DeFi Roadmap
- UK and US Announce Joint Task force to Boost Collaboration on Crypto Regulation
- Deutsche Bank Predicts Central Banks Could Adopt Bitcoin Alongside Gold by 2030
- Bitget’s Universal Exchange Merges Crypto, Stocks, and RWAs To Offer Global Market Access
- PancakeSwap Launches Crosschain Swaps on Solana Amid Aster DEX Competition
- Solana Price Prediction: $836M Whale Transfer Spark Fear of $200 Retest Before 62% Rebound
- Bitcoin Price Prediction: $150K in Q4 as Gold’s ATH Momentum Sets the Tone
- PUMP Price Forecast: Whale Buys 1B Tokens as Bullish Pennant Signals 65% Breakout
- Bitcoin Price Prediction: Analyst Highlights Breakout Patterns as Coinbase CEO Backs Crypto Structure Bill
- Dogecoin Price Prediction: Grayscale ETF Move Aligns With Cycle Breakout
- Chainlink Price Prediction: Whales Scoop 2M LINK as Analysts Eye 184% Breakout Rally
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
