As competition continues in the stablecoin market, BUSD is gaining strength as a result of increased supply and intense demand.
As the cryptocurrency market continues to expand and grow, the use of stablecoins is getting stronger. Especially after the Terra crisis, the fact that UST became a depeg also fueled the competition in this market. Companies that can support their project with their financing and structure continue to strengthen their presence. In the competition between USDC, BUSD and USDT, the BUSD move from Binance was not delayed.
Binance Concentrates on the Stablecoin Market
Standing out in the stablecoin competition, Binance continues to work for BUSD, which is supported by its company. The powerful company finally sold the reserves it had collected from its market rival, USDC. Having emptied its USDC reserves, the company converted the cash it received from there to the BUSD side.
Sam Bankman-Fried, crypto billionaire and founder of the FTX exchange, described this transaction by Binance as the second major stablecoin battle. The first battle was in 2018, a competitive race where USDT and USDC stood out.
In addition, an increase in supply was observed on the BUSD side. BUSD supply is around 21.6 billion units according to current data. Given this supply and market cap, BUSD dominates 15 percent of the stablecoin market.
According to current data, the leader of this market competition, Tether’s project stands out as USDT. The company is ahead of BUSD and USDC due to its strong economic structure and concentration on a single project.
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