Massive Reshuffling In Crypto Market As Binance’s BUSD Depegs To Tether
Binance’s BUSD stablecoin market capitalization continues to fall as users convert their BUSD stablecoins to Tether’s USDT. The move comes as the New York Department of Financial Services on Monday ordered Paxos Trust Co., the issuer of Binance USD (BUSD), to stop creating more of Binance’s dollar-pegged stablecoin.
Binance CEO Changpeng “CZ” Zhao tweeted that users have started migrating to other stablecoins. Binance plans to make product adjustments accordingly, including moving away from using BUSD as the main pair for trading. However, Binance will continue to support BUSD for the foreseeable future.
As a result, Binance USD (BUSD) depegs to Tether (USDT). The market cap of BUSD fell amid uncertainty, while the USDT market cap has increased to $68.58 billion today, February 13. Meanwhile, Circle’s USD Coin (USDC) market cap shows no upside move, indicating conversions happening mostly to USDT.
Moreover, data revealed that USDT accounted for nearly 14% of 3pool’s TVL in Curve with a TVL of $537 million, the lowest since April 2022. Thus, it also indicates users are converting their stablecoins into USDT. In the past 24 hours, Curve 3pool generated $242 million in trading volume, with a liquidity utilization of 45%.
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Tether Market Share Rises to 50%
Paolo Ardoino, CTO of Tether, took to Twitter to announce that USDT stablecoin market share nearing 50% for the first time in the last 14 months.
Tether recently reported a $700 million profit in the fourth quarter, with significantly reducing its secured loans and eliminating its commercial paper exposure. The recovery in the crypto market in January was supported by increased USDT transactions, helping recover the USDT market cap.
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