Binance BUSD Enjoys a Higher Market Share Even When Market Slumps

Vignesh Karunanidhi
Binance BUSD Enjoys a Higher Market Share As Market Slumps
Source: Swissborg

Stablecoins are becoming a crucial component of the cryptocurrency market. However, the stablecoin market is dominated by a small number of major firms. One of the biggest and most well-known stablecoins on the market is Binance USD (BUSD).

The commonly used token has only been around for three years. Nevertheless, since the project’s launch in September 2019, a lot has happened.

In a market condition when the crypto markets are slumping, BUSD is enjoying a spree of positive activities. Recent data from the Block reveals that BUSD is going through its best market conditions to date.

For the first time ever, the supply of Binance’s BUSD has crossed $20 billion. The market share of BUSD has also touched 15.48% of the overall $140 billion stablecoin total market supply. It also experienced 22% of trade dominance.

Sam Bankman says that supply change is mainly due to Binance’s move

Sam Bankman Fried, CEO of FTX, responded to the news with a retweet, sharing his opinion on the news. Fried stated that ever since Binance converted USDC to BUSD on its platform, the change in BUSD supplies started to become evident.

He mentioned that it was the beginning of the “Second Great Stablecoin War.” The first war was between USDC and USDT against TUSD/GUSD/USDP.

Fried stated that the market situation is different now. He also stated that there is a more positive interest rate and thus more revenue for stablecoins. Stablecoin issuers have also learned a major lesson: to not block redemptions that can cause stablecoins to be unstable.

The scrutiny of stablecoins began soon after the fall of TerraUSD. From $1, the coin fell to zero overnight. The stablecoin market is now ruled by USDC, USDT, and BUSD. The fall of TerraUSD taught the stablecoin issuers a valuable lesson that can help them to keep the stablecoins stable.