Six days ago, hours before blockchain infrastructure platform Paxos announced that it would stop minting BUSD stablecoins, BUSD tokens worth $2.86 billion were redeemed.
Currently, Binance is the most active exchange for trading BUSD tokens, and stablecoin still accounts for about 10.7 percent of the $67.71 billion in global cryptoeconomy trading volume over the past 24 hours.
BUSD’supply falls 17.77% in 6 days
Statistics show that a significant amount of BUSD has been redeemed over the past six days, with supply falling by 17.77% during this period. Over the past 30 days, the supply of BUSD has decreased by 19.2%. On February 13, 2023, Paxos, the company that issues, manages and redeems BUSD bonds, announced that it will no longer mint new BUSDs in the future.
Redemptions poured in after the Paxos announcement, with $290 million redeemed in eight hours. At the time of the announcement, there was $16.1 billion of BUSD outstanding. As of February 19, 2023, there will be approximately $10 billion of BUSD outstanding. 13,238,824,118 BUSD in circulation, which means that the 17.77% of BUSD redeemed represented 2.861 billion tokens removed from the market.
Glassnode statistics show that the supply is 13.43 billion, while coingecko.com statistics show that the supply is 13.23 billion.
The blockchain intelligence company Nansen monitored the wallet Paxos Treasury, which sends millions of BUSD to the address of combustion, effectively removing the stablecoins from circulation. According to the Nansen report wallet tool exchangeBinance currently holds 10.9 billion BUSD as of February 19, 2023. The metrics show that BUSDs still account for $7.24 billion of the day’s $67.71 billion in global trading volume, representing 10.7 percent of the total.
Binance dominates most of BUSD’s trading volume, with the most popular stablecoin trading pair being tether (USDT). According to statistics from cryptocompare.com, 5.52% of BUSD’s volume on Sunday was also matched to the Turkish lira. While BUSD has seen the most redemptions in the past 30 days, USDC has seen 2.9% of its supply removed in that time.
Notably, Paxos’s other stablecoin, the dollar pax (USDP), saw its supply fall by 1.5 percent. 19.3%. A significant amount of pax gold (PAXG) was also withdrawn, as 11.3% of the outstanding supply was wiped out in 30 days. On the other hand, tether (USDT) saw a 5.8% increase in supply, resulting in a market capitalization of over $70 billion.