Nearly 3 Billion BUSD Stablecoins Have Been Removed From the Market in 6 Days
Six days ago, hours before blockchain infrastructure platform Paxos announced that it would no longer issue BUSD stablecoins, $2.86 billion worth of BUSD was redeemed. Binance is currently the most active exchange trading BUSD tokens and the stablecoin still accounts for roughly 10.7% of the $67.71 billion in global cryptocurrency trading volume over the past 24 hours.
BUSD supply down 17.77% in 6 days
Statistics show that a significant amount of BUSD has been redeemed over the past six days, with supply decreasing by 17.77% over the period. Over the past 30 days, the supply of BUSD has decreased by 19.2%. February 13, 2023 Paxos, the company that issues, manages and redeems BUSD, announced that it will no longer mint new BUSD in the future.
After Paxos made the announcement, the exchanges intensified, with $290 million redeemed within eight hours. At the time of the announcement, there was US$16.1 billion in circulation. As of February 19, 2023, there are about 13 238 824 118 BUSD is in circulation, meaning that 17.77% of BUSD redeemed is 2.861 billion tokens removed from the market.
Blockchain analysis firm Nansen is tracking the Paxos Treasury wallet, which sends millions of BUSD to a burn address, effectively removing stablecoins from circulation. According to Nansen portfolio instrumentBinance currently owns 10.9 billion BUSD as of February 19, 2023. The metrics show that BUSD still accounts for $7.24 billion of the $67.71 billion daily global trade volume, accounting for 10.7% of the total.
Binance dominates most of the BUSD trading volume, with the most popular stablecoin trading pair today being Tether (USDT). According to cryptocompare.com statistics, 5.52% Sunday’s BUSD volume was also linked to the Turkish lira. Although BUSD has had the most redemptions in the past 30 days, USDC has lost 2.9% of its supply over the period.
Notably, the supply of Paxos’ other stablecoin, the pax dollar (USDP), fell by 19.3%. significant amount Pax Gold (PAXG) was also removed as 11.3% of working capital was removed in 30 days. On the contrary, tether (USDT) increased supply by 5.8%, bringing the market capitalization to over $70 billion.
What do you think the future holds for BUSD in light of these recent events and redemptions? Share your thoughts in the comments section below.
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