Tether, behind USDT, the largest stablecoin, announced its Binance collaboration. The issuer of the US dollar-pegged stablecoin has transferred 1.6 billion USDT from the Tron network to the Ethereum network. Here are the details…
Binance is subject to 1.6 billion USDT transfer
As we have announced as Kriptokoin.com, USDT, the world’s largest stablecoin, has transferred 1.6 billion USDT as a result of cooperation with Binance. This transfer marked the flow of coins from the TRON (TRC20) network to the Ethereum (ERC20) network. Thus, USDT tokens became available on the Ethereum network. The exchange stated that the chain change was carried out to “support ecosystem demand”.
It is also worth noting that the use of Binance’s BUSD stablecoin in the ecosystem has been declining due to regulatory concerns. Therefore, the use of USDT in the stock market is expected to increase. In other words, this chain change is important because of the expectations that USDT usage will increase and meet the demand for USDT.
BUSD’s market cap bottomed out
Meanwhile, the market cap of stablecoin Binance USD, issued by Paxos, dropped to $9.5 billion. This marks the first time the circulating supply of BUSD has dropped below $10 billion since June 2021. Demand for BUSD has been falling rapidly since Paxos announced on February 13 that it would stop issuing new BUSD tokens based on orders from the state regulator New York Department of Financial Services (NYDFS).
Separately, the U.S. Securities and Exchange Commission (SEC) reportedly is preparing to sue Paxos for offering unregistered securities. Blockchain data from crypto intelligence firm Nansen shows that investors have used around $6.7 billion in BUSD from Paxos since Feb. As a result of falling demand, Dogecoin (DOGE) has replaced BUSD as the ninth largest cryptocurrency by market cap, according to CoinMarketCap.
Coinbase delists BUSD
US-based crypto exchange giant Coinbase announced this week that it will stop trading BUSD on the platform from March 13. Brian Armstrong, Coinbase Chief Executive Officer, expressed liquidity concerns regarding the stablecoin’s delisting. “Coinbase’s decision to delist was taken as a precaution, likely due to the prospect of a future drop in liquidity or operational concerns about redemptions,” said Clara Medalie, director of research at crypto market research firm Kaiko.
BUSD liquidity on Binance, the stablecoin’s main market, has deteriorated significantly over the past month. Kaiko data shows that the 2 percent market depth for the BUSD-USDT and BUSD-DAI stablecoin pairs has dropped from $200 million in February before the Paxos announcement to $123 million.
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