Binance USD (BUSD) Supply and Market Share Hit All-Time Highs
Both the total supply and market share of Binance USD (BUSD) have recently reached historic highs in the stablecoin sector.
Statistics show that since late September 2022, the market capitalization of Binance USD (BUSD) has surpassed $20 billion for the first time and is currently stabilizing around $21.6 billion. This marks a continuation of the steady increase in the supply of the stablecoin backed by Binance, the world's largest cryptocurrency exchange.
BUSD Market Cap Fluctuations from Early 2022 to Present, Screenshot from CoinMarketCap on 10/06/2022
While other major stablecoins like Tether (USDT) and USD Coin (USDC) have experienced significant fluctuations in supply following the LUNA-UST collapse in May and subsequent liquidity crises among major crypto firms, BUSD has shown consistent growth. It now holds a 15.48% market share within the over $140 billion stablecoin sector.
Market Share Fluctuations of Leading Stablecoins, According to The Block
Currently, USDT remains the largest stablecoin with a market cap of $67.5 billion, followed by USDC with $40.4 billion. However, USDC's market cap has notably declined recently, particularly after it was revealed that its issuer, Circle, might freeze user funds following the Tornado Cash incident.
USDT Market Cap Fluctuations from Early 2022 to Present, Screenshot from CoinMarketCap on 10/06/2022
USDC Market Cap Fluctuations from Early 2022 to Present, Screenshot from CoinMarketCap on 10/06/2022
Despite this, all three of these stablecoins are considered safer compared to decentralized or algorithmic stablecoins on the market. This is primarily because they are backed by real USD or cash-equivalent assets, rather than cryptocurrencies.
BUSD has also benefited from Binance's recent strategic shift. Instead of being limited to serving as a stablecoin within the Binance ecosystem and BNB Chain, BUSD is now expanding to other blockchains like Polygon and Avalanche.
Moreover, at the end of September 2022, Binance announced the consolidation of all stablecoin balances into BUSD, with the exception of USDT. While users can still deposit and withdraw other stablecoins normally, all balances will be displayed in BUSD. Binance stated that this move aims to simplify trading operations and eliminate liquidity barriers on the platform.
