Tether (USDT) Adds $1 Billion to Market Cap
The recent crackdown on Paxos and BUSD has significantly boosted Tether's USDT, expanding its market share.
Tether (USDT) Adds $1 Billion to Market Cap
According to data from CoinMarketCap, USDT, the largest stablecoin by market capitalization, has seen its market cap increase by $1 billion amid investor pullback from its rival BUSD, which has faced regulatory challenges this week.
As reported by Coin68, the New York Department of Financial Services has ordered Paxos to cease issuing new BUSD, following the U.S. Securities and Exchange Commission (SEC) announcing plans to classify the stablecoin as an “unregistered security.” Launched under Binance’s brand, BUSD is currently the third-largest stablecoin by market cap and accounts for 35% of the trading volume on the world's largest crypto exchange.
In the wake of this conflict, the community is gradually moving away from BUSD, transitioning to other stablecoins, with Tether's USDT emerging as a likely "safe haven" at present. Specifically, USDT’s market cap has surged from $68.5 billion to $69.6 billion since February 14. This represents the most significant leap since the chaos of June last year and the resurgence of old FUD regarding collateral assets.
Meanwhile, the market cap of BUSD issued by Paxos, linked with Binance, has quickly plummeted from $16.1 billion to $14.2 billion, reflecting the amount of USDT Tether has gained. Paxos has burned over $1.8 billion in BUSD since February 14, according to Nansen.
Paxos has burned $1.1 billion in BUSD in the past 24 hours. According to Nansen.
The overall stablecoin market, valued at $136.1 billion, is experiencing constant shifts, with the market share tipping in favor of Tether at 51.28%. As the longest-standing stablecoin, Tether (USDT) remains the most preferred option among users.
Other major stablecoins like Circle’s USDC and MakerDAO’s DAI appear relatively stable. This suggests that investors are either switching from BUSD to USDT or converting to fiat and other digital assets.
In a recent AMA, Binance CEO Changpeng Zhao mentioned that after “parting ways” with BUSD, Binance expects many other stablecoins to emerge and is open to collaborating with those projects.
