Holders of the stablecoin issued by Paxos have converted their BUSD for an amount greater than 700 million dollars in less than 48 hours. Tether takes advantage of a rise in the capitalization of theUSDT.
The announcement came on Monday: Paxos should be prosecuted by the SEC for issuing the stablecoin Binance USD qualified from security. The company has since been banned from issuing new tokens.
This regulatory episode naturally has consequences for the capitalization of the main stablecoins of the market. The first to be affected is of course the BUSD. Within 27 hours, Paxos received important orders.
A gradual decline in Binance USD
The issuer, which has pledged to guarantee the token’s conversion to dollars until 2024, has made redemptions totaling over $700 million since Monday, according to data provider Nansen, and proceeded to burn of the said tokens.
The capitalization of the Binance USD testifies to this. According to Coinmarketcap, it is now 15.2 billion dollars. On February 13, this valuation exceeded 16 billion dollars. This trend is to be noted for CZ.
We expect users to migrate to other stablecoins over time. And we will make product adjustments accordingly. For example, abandoning the use of the BUSD as the primary pair for trading,” Binance’s CEO is already considering.
But the misfortune of some makes the happiness of others. We are seeing a shift in investors to another stablecoin in the market, the USDT from Tether – yet in trouble with the authorities in the past.
The ups and downs of the USDC
Earlier this week, theUSDT had a capitalization of approximately $68.4 billion. Since the formalization of the SEC proceedings against the 3rd largest stablecoin in the market, USDT has been making progress.
Its capitalization has climbed by $1 billion and daily trading volume is up 6% to over $41 billion. The trend is much more chaotic on the USDC side.
Circlewhich is said to have alerted the regulator to the BUSD, is showing strong volatility in terms of capitalization. The USDC first recorded a sharp decline, falling from $41.2 billion to $40.8 billion at its low on February 14. The token’s capitalization then jumped to $41.4 billion between February 14 and 15. This sudden recovery was short-lived, however, as this indicator fell by over $400 million.
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