This Indian Exchange Follows Binance In Stablecoin Priorities
In yet another jolt to USDC, the second largest stablecoin, yet another crypto exchange is set to delist it. Earlier this month, top exchange Binance announced its plans to discontinue support for USDC transactions. As per the plan, all new USDC deposits would be auto converted into BUSD, Binance’s own exchange token. In a fresh update, another crypto exchange joined Binance in delisting USDC and supporting BUSD.
The Stablecoin Shuffle – Binance Effect
Apparently, Binance looks to increase BUSD’s usage and volumes and establish it as a top stablecoin. But this could have a significant impact on USDC’s prospects, considering Binance’s huge crypto volumes. All deposits of USDC, USDP and TUSD stablecoins will get converted to BUSD on the top exchange. Meanwhile, Indian exchange WazirX said it stopped deposits of USDC, USDP, and TUSD, and discontinued support to any new deposits.
“To enhance liquidity and capital efficiency for users, WazirX will implement BUSD Auto-Conversion for users’ existing balances of USDC, USDP, and TUSD stablecoins at a 1:1 ratio.”
Users’ stablecoin balances after delisting will be automatically converted to BUSD before October 5. Following the auto-conversion, users will be able to withdraw USDC, USDP, or TUSD at a ratio of 1:1 from their BUSD balances. With this, there is a possibility that USDC’s market cap could have a dent in near future.
Will USDC Dethrone USDT?
Tether’s USDT, the largest stablecoin by market cap, currently is valued a total of $67.92 billion. Whereas USDC holds a total market cap of $50.13 billion. Recent growth patterns showed that USDC could exceed USDT’s total market size. There was a huge gap in the growth rates of the two cryptocurrencies. Going by the same pattern, USDC looked set to dethrone USDT as soon as October of 2022. However, the Binance auto conversion factor could put a dent in USDC stablecoin’s growth rate. Adding to this is another setback in the form of WazirX delisting USDC.
- FG Nexus to Tokenize Stock on Ethereum as SEC Weighs 24/7 Onchain Stock Trading
- Bitcoin Still Undervalued, JPMorgan Forecasts Rally to $165,000
- Breaking: CME to Launch 24/7 Crypto Futures Trading Amid Rising Institutional Demand
- Citigroup Predicts Bitcoin Could Climb to $231,000 in 12 Months
- Ethereum and BMNR Rallies as BitMine Drops $1B on ETH, Analyst Hails “Most Bullish Setup Yet”
- Pi Network Price at Risk of Another Crash as Mysterious Whale Stops Buying
- Solana Price Eyes $360 After Bullish Retest As VisionSys AI Deploys $2B Treasury Strategy
- Cardano Price Forecast As Hashdex Listing Fuels Optimism For $1.27 Breakout
- BONK Price Rally Ahead? Open Interest Jumps as TD Buy Signal Flashes
- Shiba Inu Price to Surge as Whales Buy and Team Commits to Shibarium Growth
- XRP Price Prediction After Ripple CTO David Schwartz Resigns
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.
