Binance USD market cap falls below $10B
Binance USD is Binance’s stablecoin, launched in 2019. It has seen a specific drop in its market cap over the past years. Therefore, the Binance USD market cap falls below $10B amid rising regulatory concerns. On November 15, 2022, BUSD hit an all-time high market cap of %23.49 billion. Its market cap has fallen to $9.66 billion, the lowest since June 29, 2021.
This drop in market cap is largely due to the United States’ regulatory crackdown on its token issuer. Paxos and a planned delisting of BUSD from cryptocurrency exchange Coinbase.
On February 12, 2023, the United States Securities Exchange Commission announced a potential lawsuit. This news and the New York District of Financial Services ordered Paxos to stop minting. It has resulted in a $6.65 billion shave-off of BUSD’s market cap.
Coinbase’s decision to delist BUSD from its exchange on March 13 also contributed to the drop in market cap.
According to the report, the stablecoin ‘’no longer met our listing standard. BUSD’s fall in demand also reflects in comments made by Binance CEO Changepeng. CZ Zhao in a Twitter spaces event n February 14, 2023, where he expressed doubts about Binance. He stated that how thought it might fail when it was first launched.
An inclusive cryptocurrency market has also seen a drop in market cap. Some attribute this to the recent controversy surrounding Silvergate Bank’s late filing of its annual 10-k financial report on March 1, 2023.
However, Binance USD’s market cap falls below $10B and is ranked 10th across all cryptocurrencies in terms of market cap. The next crypto token on the list is Solana, with $7.98 billion in market cap. Due to the decline in BUSD demand, Binance has recently minted nearly $50 million worth of TUSD as the cryptocurrency exchange looks to diversify its stablecoin holding.
A combination of factors can be attributed to BUSD’s market cap decline. It includes the regulatory crackdown on its token issuer, Paxos and the planned delisting of BUSD from Coinbase.
Th wider cryptocurrency markets’ drop in market cap and Binance CEO Changepeng’’CZ’’ Zhao’s comments also contributed to the decline. Binance USD market cap falls below $10B amid rising regulatory concerns. As the cryptocurrency market evolves and regulations tighten, stablecoins may face further scrutiny and volatility.