BUSD Transactions Sink To 2021-Low

The number of wallets sending and receiving BUSD transfers slumped to a new two-year low on May 2, data from Glassnode showed.Declining trading activity comes after U.S. regulators cracked down on stablecoin issuer and crypto trust company Paxos.The Binance-branded token slumped further as protocols, investors, and platforms lost faith in the stablecoin.Meanwhile, Tether's USDT dominance over the stablecoin market strengthens while rival issuers navigate regulatory scrutiny and banking debacles. Binance USD (BUSD) transactions dipped to a fresh two-year low on May 2, 2023 months after regulatory scrutiny and widespread loss of faith punctured the stablecoin's market cap.

Timeline of Binance-usd

Statistics recorded on April 15, 2023, show that the number of coins in circulation for the stablecoin BUSD dropped below the 7 billion range to 6.68 billion, marking the lowest number of BUSD in circulation since April 2021. Furthermore, data indicates that the supply of BUSD has shrunk by 19.8% over the past 30 days.

Dogecoin rival Shiba Inu (SHIB) has surpassed Binance USD (BUSD) in market capitalization, moving into the 14th spot on CoinGecko's rankings. It currently has a market cap of $6.8 billion as of Apr. 16.

Binance – the world's largest and most popular digital currency exchange – is converting more than $1 billion of its stable currency BUSD (Binance USD) into bitcoin, Ethereum, and various other digital assets.

Recently, the stablecoin market experienced significant changes, creating an opportunity for other stablecoins, such as Pax Dollar [USDP] and TrueUSD [TUSD], to grab the market share. Since Binance's [BUSD] decline following CFTC's allegations, there has been a vacancy at the top of the list.

On March 31, Binance.US, a US-based subsidiary, announced that it had temporarily suspended trading for stablecoin pairs involving Binance USD (BUSD) through One Common Billing System (OCBS). The suspension was due to an ongoing investigation by the Commodity Futures Commission (CFTC) into potential violations committed by the exchange.

Binance's BUSD has suffered over $500 million in outflows following the lawsuit brought by the CFTC. However, the impact on the stablecoin was comparatively limited to that seen after the enforcement action on Paxos last month.

According to statistics, on March 26, the stablecoin economy was valued at $135 billion, with the top stablecoins representing $31.8 billion or 75% of the $42.17 billion in 24-hour global trade volume across the entire crypto market. In the last two weeks since March 11, 7.06 billion USDC and 351.57 million BUSD have been redeemed.

Cryptocurrency exchange Binance has replaced its Binance USD (BUSD) holdings in its Secure Asset Fund for Users (SAFU) with TrueUSD (TUSD) and Tether (USDT) in response to Paxos' move to stop minting new BUSD. SAFU is an emergency insurance fund established by Binance to protect users' funds in case of security breaches or other unforeseen events.

Binance – the world's largest cryptocurrency exchange – announced that it has converted the BUSD stablecoin it its SAFU fund. The Secure Asset Fund for Users (SAFU) was launched by the exchange back in 2018 as an emergency insurance fund in order to protect users.

Binance News: Back on January 29, 2022, Binance unveiled the “Secure Asset Fund for Users (SAFU), which is an emergency insurance fund valued at $1 billion to safeguard its users from any catastrophic event. The SAFU fund wallets were initially stocked with BNB, BUSD, and BTC.