According to data on CoinMarketCap, USDT – has increased by $1 billion in market capitalization, as investors retreat from rival BUSD, which is cracked in a difficult position with the regulator. at the beginning of this week.
As reported, the New York state regulators ordered Paxos to stop minting new Binance USD tokens (BUSD), after the US Securities and Exchange Commission (SEC) announced alleging the stablecoin as a security. Backed by Binance, BUSD is currently the 3rd biggest stablecoin in market capitalization and accounts for 35% of the total trading volume of Binance.
After the above war broke out, the community is gradually getting rid of BUSD, moving to other stablecoins, in which Tether’s USDT is probably the safest “haven”. Specifically, the market capitalization of USDT has increased from $68.5 billion to $69.6 billion since February 14. This is the most significant jump since last June’s turmoil.
Meanwhile, the capitalization of BUSD issued by Paxos associated with Binance quickly dropped, from $16.1 billion to $14.2 billion, corresponding to the USDT value that Tether has earned. According to Nansen, Paxos has burned more than 1.8 billion BUSD since Feb.14.
The overall stablecoin market worth $136.1 billion is constantly changing and the balance of market share is in favor of Tether with 51.28%. But as the oldest stablecoin, Tether (USDT) is often the most popular choice of users.
Other big-cap stablecoins such as Circle’s USDC and MakerDAO’s DAI do not appear to have much movement. This proves that investors are either moving from BUSD to USDT or moving to fiat and other digital assets.
In a recent AMA, Binance boss Changpeng Zhao said that many other stablecoins would emerge instead of BUSD and Binance is willing to cooperate with those projects.