The pressure exerted by the US on BUSD, which is in Binance’s ecosystem, brought along question marks.
Stablecoins, which enable easier and faster transactions in the cryptocurrency industry, are going through tough days with claims of “securities”. In the past years, Terra USD (UST) in the Terra ecosystem has also created a pessimistic environment for stablecoins. Seeking to solidify regulatory and supervisory clarity, US regulators have put intense pressure on stablecoins. However, these processes did not create the panic atmosphere expected in stablecoins.
Battles for Domination in Stablecoins!
US regulators have launched an investigation against Paxos, the issuer of Binance USD (BUSD). Although Binance announced that it is not included in the issuance part and only uses it as an ecosystem product, it could not avoid being on the agenda. This situation, which is the last panic atmosphere in the markets, brought with it large money outflows on the BUSD side.
Investors exiting BUSD turned to Tether (USDT), which they see as a safer and more sheltered port. Binance CEO CZ stated that approximately $2.5 billion in assets have moved from BUSD to USDT.
U.S. regulators’ use of the term “non-registered securities” for BUSD has become a new topic of turmoil after algorithmic stablecoin problems. UST, which was a depeg in the past years, also attracted attention with its algorithmic structure.
The announcement by Paxos, which is in the middle of the lawsuits, that it will stop printing BUSD, puts the possibility of 137 billion dollars slippage in the markets on the table.
These short-lived situations did not include a negative situation in terms of the stablecoin market. Stablecoin market cap saw a $2 billion increase amid the bad news.
“There is so much demand for dollar-backed stablecoins, they just can’t go,” said Alex Miller, CEO of Hiro, which focuses on Bitcoin developments. said.
Tether (USDT), which is called the leader in the stablecoin market, has reached $ 70.3 billion in market capitalization since the news. It currently dominates 52.6% of the stablecoin market. USD Coin (USDC), the second largest stablecoin, has reached a market cap of $42 billion with an inflow of over $700 million. This gave it a 31.3 percent dominance in the stablecoin market.
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