Eight days ago, Paxos announced that it would no longer issue the BUSD stablecoin. Since then, the market cap of the coin has been declining as redemptions have become more visible. Meanwhile, a Nansen-based data scientist found that Binance, the largest cryptocurrency exchange by trading volume, has increased its USD holdings by $1.5 billion over the past seven days.
Nansen Researcher Discovered Binance Stacking Circle Stablecoin
According to Nansen journalist Martin Lee, the number of United States dollar (USDC) coins held on Binance has been steadily increasing this week. “It’s interesting to see how the amount of USDC on Binance has increased so much since the BUSD news,” Li. tweeted on Tuesday. Li also elaborated that Binance recorded USDC growth of $1.5 billion over the past seven days.
He also noted that he was waiting for the cable to be delivered (USDT) increase more on Binance than on USDC, “given that you cannot trade using USDC” on Binance. On September 5, 2022, Binance retired US dollar (USDC) trading pairs and automatically converted customer balances to BUSD. Two weeks later, Wazirx followed Binance’s move by delisting the usd coin (USDC) and a couple of other stablecoins to automatically convert balances to BUSD.
On February 19, Bitcoin.com News reported that about 3 billion BUSD was removed from the market, and today this figure reaches 3.55 billion as Paxos announced that it would no longer mint BUSD. The Paxos-managed stablecoin is still the third largest stablecoin by market capitalization until it falls below a DAI market valuation of $5 billion. Once a top 10 crypto asset by market cap, BUSD is very close to being knocked out of the top 10.
The Nansen researcher also marked that there is $1.8 billion in Binance’s main wallet today, the highest in 90 days. At the time of writing, at 2:00 pm ET on February 21, 2023, US$1.821 billion stored in the Binance wallet. It’s worth noting that Nansen’s portfolio viewer only views ERC20-based balances, and Binance has just over 100 million Tether (USDT) in the same wallet. The Binance wallet also contains 79.24 million TrueUSD (TUSD) and 5.34 million DAI.
What do you think about Binance stacking USD coins after regulators crack down on BUSD? Share your thoughts in the comments section below.
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Credit : news.bitcoin.com
