BUSD is Now Ranked as the Fourth Largest Stablecoin by Market Cap

As per the recent CoinMarketCap statistics, the dollar-pegged Binance USD (BUSD) stablecoin is now ranked fourth in terms of market capitalization among other stablecoins. 

USDT’s Market Share at All-time High

The market domination of stablecoins with connection to the dollar has changed over the previous year, with Tether returning to its all-time high and the majority of stablecoins experiencing a decline. 

BUSD Market Share Drops

Market share for Circle’s USD Coin dropped from 34.88% in May 2022 to 23.05 % in May 2023. BUSD’s market share decreased from 11.68% to 4.18% in the same time period. The stablecoin’s market share increased from 47.04% a year ago to 65.89% in May. 

USDT’s  market worth has increased to $83.1 billion, whereas USDC’s has decreased from $55 billion to $29 billion.

What is BUSD?

Notably, Binance USD (BUSD) is a stable coin created by Binance that is 1:1 USD-backed and is approved and governed by the New York State Department of Financial Services. It is a digital asset whose value is tied to a reserve of US dollars in order to maintain a constant value. The BUSD may be used for a number of things, such as boosting global commerce and operating as a means of payment for products and services.

Binance and Paxos Disagreement

Moreover, Paxos issued and held the product, however Binance licensed its brand since the agreement between Binance and Paxos Trust produced the BUSD stablecoin in September 2019. The U.S. Securities and Exchange Commission allegedly sent the business a Wells Notice in February saying that Binance USD was an unregistered securities.  

Surge in BUSD Withdrawals

An article claiming the US Department of Justice might target Binance in December of last year prompted net withdrawals of $3.6 billion over the course of seven days. The traders withdrew significant amounts of BUSD from the exchange, including more than $245 million from Jump Finance. Along with all of those setbacks, the Securities and Exchange Commission (SEC) recently sued Binance and its CEO, Changpeng “CZ” Zhao which led the exchange for the temporary suspension of USD deposits.