According to Glassnode data, the number of addresses sending and receiving BUSD has reached the lowest level in the last two years.
BUSD activity has dropped drastically since regulators scrutinized the stablecoin that Binance previously supported. Binance USD, commonly known by the acronym BUSD, is a joint project between Binance and financial services provider Paxos.
Tether Rises While BUSD Falls
The decline in Binance USD activity came after Paxos received a Wells notice from the US Securities and Exchange Commission (SEC) in February.
The regulatory agency has classified BUSD as an unregistered security. The following month, Binance CEO Changpeng Zhao announced that the exchange would convert nearly $1 billion left from Industry Recovery Initiative funds into Bitcoin, Ethereum, and BNB. Crypto assets, on the other hand, would only be bought with Binance USD.
BUSD, which once had a supply of over $23 billion, is today just over $6 billion.
Tether’s USDT is currently worth more than $82 billion. That’s nearly $50 billion more than the second-placed USDC issued by Circle.
Tether, by far the most dominant stablecoin in the crypto industry, continues to issue new tokens relatively quickly.
Looking at Ethereum’s stablecoin supply in particular, the total USDT reaches over 36 billion tokens. Binance USD, on the other hand, has just over 6 billion tokens in total. For some, the supply of USDT has historically helped determine the direction in which the Bitcoin price or the crypto market as a whole will trend.
Simon Cousaert, director of research at The Block, said last month: “Overall, Tether issues new USDT when it sees higher demand. This indicates that new cash is entering the system,” he said.
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