Binance USD (BUSD), the stablecoin created by Binance, is close to its demise. Its market capitalization has fallen more than 80% so far in 2023.
BUSD’s market capitalization has fallen from USD 23 billion in November 2022 to USD 4 billion in June of this year. Only in May capitalization lost 18%, according to figures from the analysis company CCData.
At the same time that BUSD approaches critical levels, occupying less than 5% of all stablecoin market capitalization, Binance, the company that created this stablecoin, has been promoting the use of TrueUSD (TUSD).
It is a stablecoin that although it still does not surpass BUSD in terms of market capitalization, since it is trading above USD 3.1 billion, it has done so in trading volumes tripling those of BUSD, as shown figures from CCData.
TrueUSD (TUSD) is currently the fifth largest stablecoin on the market (just behind BUSD), being launched in 2017 by the TrustToken company. It is a native Ethereum ERC-20 token whose Backups in dollars are deposited in different banking entities in the United States. The company behind TUSD promises 1:1 convertibility with the US currency.
The SEC lawsuit as the cause of the disappearance of BUSD
The reason for BUSD’s precipitous decline lies in the fact that BUSD is destined to cease to exist. In February 2023, CriptoNoticias reported that Paxos, the issuing company, would stop issuing this stablecoin due to a lawsuit filed by the United States Securities and Exchange Commission (SEC).
According to the Paxos statement, BUSD can be exchanged until February 24, 2024, this being the possible date of its exit from the market.
Given the news, investors have decided to migrate to other stablecoins, such as tether (USDT), the cryptocurrency with the largest market capitalization, which recently reached a all-time high over USD 84 billion.
