The front lines between the main stablecoins have been moving in recent months. While Tether (USDT) has seen its hegemony threatened by the USDC, it is now the latter’s turn to see itself manhandled by an outsider. Will Binance succeed in its bet and impose its BUSD?
Binance converts its UDSC into BUSD
Remember: a month ago the hegemonic Binance exchange decided to stop supporting certain stablecoins. Circle’s USDC was particularly targeted by the measure: users can still deposit, but it is now automatically converted to BUSDBinance’s stablecoin.
The maneuver was widely interpreted as a desire on the part of Binance to promote its own cryptocurrency. BUSD is indeed the third most capitalized stablecoin. And his ambitions grew.
USDC had been scrambling to get closer to Tether’s USDT for months, to the point that observers were waiting for the moment when the latter might give way. But things have changed. Since Binance’s new policy, BUSD has been on the rise. Its supply has increased significantly in recent times, exceeding last September 20 billion dollars :
The progression of Binance’s BUSD capitalization
As for the USDC, its capitalization continued to progress, but it also experienced a low in the month of June:
Shares of total capitalization of major stablecoins
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Can BUSD overtake rival USDC?
Since the Terra (LUNA) affair, and the catastrophic fall of its UST, stablecoins have been particularly observed within the ecosystem. Binance in particular weighs particularly heavy in the industry, and the fanfare arrival of its dollar-backed cryptocurrency can bode well for a strengthening of the company’s position.
So will this new stablecoin war be fatal for the USDC? This is still very far from being the case. But we note that Binance has placed its pawns particularly well. It will therefore be necessary to see if this will eventually allow it to overtake Circle’s stablecoin.
👉 Read – The USD Coin (USDC), Circle’s dollar stablecoin and Coinbase
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Journalist at Cryptoast, I fell into the pot of cryptocurrencies a few years ago. I am passionate about the innovative technologies that stem from the blockchain and I like to find the most crispy information to share with you.
Marine Debelloir
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