Six days ago, a few hours before blockchain infrastructure platform Paxos announced it would no longer mint BUSD stablecoins, $2.86 billion worth of BUSD was redeemed. Currently, Binance is the most active exchange trading BUSD tokens, and the stablecoin still controls about 10.7% of the crypto-economy’s $67.71 billion in global trading volume in the last 24 hours.
BUSD supply shrinks by 17.77% in 6 days
Statistics show that a significant amount of BUSD has been redeemed over the past six days, and the supply has fallen by 17.77% over that time frame. Over the past 30 days, the supply of BUSD has shrunk by 19.2%. On February 13, 2023, Paxos, the company that issues, manages and redeems BUSD, announced that it will no longer create new BUSD going forward.
Redemptions went into high gear after Paxos made the announcement, with $290 million redeemed within eight hours. At the time of the announcement, there was $16.1 billion BUSD in circulation. As of February 19, 2023, there is approximately 13,238,824,118 BUSD in circulation, meaning that the 17.77% of BUSD redeemed amounted to 2.861 billion tokens removed from the market.
Statistics from Glassnode show the offer at 13.43 billion, while coinecko.com statistics show the offer at 13.23 billion.
Blockchain intelligence firm Nansen has monitored Paxo’s Treasury wallet, which sends millions of BUSD to the burn address, effectively removing stablecoins from circulation. According to Nansen’s exchange portfolio tool, Binance currently has BUSD 10.9 billion as of February 19, 2023. Measurements show that BUSD still accounts for $7.24 billion of today’s $67.71 billion in global trading volume, representing 10.7% of the total .
Binance dominates most of BUSD’s trading volume, with the stablecoin’s most popular trading pair today being tether (USDT). According to statistics from cryptocompare.com, 5.52% of BUSD volume on Sunday was also paired with the Turkish lira. Although BUSD had the most redemptions over the past 30 days, USDC saw 2.9% of its supply removed during that period.
In particular, Paxos’ other stablecoin, the pax dollar (USDP), has seen its supply decrease by 19.3%. A significant amount of pax gold (PAXG) has also been removed, as 11.3% of the circulating supply has been wiped in 30 days. In contrast, tether (USDT) has seen its supply increase by 5.8%, resulting in a market cap of more than $70 billion.
What do you think the future holds for BUSD in light of these recent developments and redemptions? Share your thoughts in the comments section below.
Jamie Redman
Jamie Redman is the news editor at Bitcoin.com News and a financial technology journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
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