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Eight days ago, Paxos announced that the company would no longer mint the stablecoin BUSD. Since then, the coin’s market value has fallen lower as redemptions have become more prominent. Meanwhile, a Nansen data scientist has discovered that Binance, the largest cryptocurrency exchange by trading volume, has increased its USD coin holdings by $1.5 billion over the past seven days.
According to Nansen’s data journalist Martin Lee, the amount of usd coins (USDC) held on Binance has been steadily increasing this week. “Interesting to see the amount of USDC on Binance increase so much since the BUSD news,” Lee tweeted on Tuesday. Lee further detailed that Binance saw an increase of $1.5 billion in USDC in the past seven days.
He also noted that he would have expected the supply of tether (USDT) to increase on Binance more than USDC, “given that you cannot trade USDC” on Binance. On September 5, 2022, Binance dropped usd coin (USDC) trading pairs and automatically converted customer balances to BUSD. Two weeks later, Wazirx followed Binance’s move, removing usd coin (USDC) and a couple of other stablecoins to automatically convert their balances to BUSD.
On February 19th, Bitcoin.com News reported that close to 3 billion BUSD had been removed from the market, and today this figure is up to 3.55 billion since Paxos revealed that it would no longer mint BUSD. The Paxos-managed stablecoin remains the third largest stablecoin by market capitalization until it falls below DAI’s $5 billion market cap. BUSD, once a prominent top-ten crypto-asset based on market capitalization, is getting very close to being knocked out of the top-ten spot.
The Nansen researcher too noted that there are 1.8 billion USDC in Binance’s main wallet today, which is the highest it has been in 90 days. At the time of writing, at 2:00 PM (ET) on February 21, 2023, there is $1.821 billion USDC held in Binance’s wallet. It’s worth noting that Nansen’s portfolio viewer only looks at ERC20-based balances, and Binance has just over 100 million Tether (USDT) in the same wallet. The Binance wallet also has 79.24 million trueusd (TUSD) and 5.34 million DAI.
What do you think about Binance stacking usd coins after regulators crack down on BUSD? Share your thoughts in the comments section below.
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