Nearly 3 Billion BUSD Stablecoins Removed from the Market in 6 Days
Amazingly, the supply of the BUSD stablecoin has decreased by 17.77% in just six days. Paxos, the blockchain infrastructure platform that issues and manages BUSD, announced on February 13, 2023 that it will no longer mint new BUSD. This announcement led to a sudden increase in redemption volume, with $2.86 billion worth of BUSD redeemed within 6 days.
According to statistics, the supply of BUSD has shrunk by 19.2% in the past 30 days, indicating that the circulating supply of BUSD has decreased significantly. As of February 19, 2023, the circulation of BUSD is about 13,238,824,118, which is lower than the circulation of 16.1 billion before the announcement.
Blockchain intelligence firm Nansen has been closely monitoring the Paxos Treasury wallet, which sent millions of BUSD to the burn address, effectively removing the stablecoin from circulation. Nansen’s Exchange Portfolio Tool shows that Binance currently holds 10.9 billion BUSD as of February 19, 2023, making it the most actively traded exchange BUSD token.
BUSD still accounts for approximately 10.7% of the crypto economy’s $67.71 billion in global trade volume over the past 24 hours, suggesting that BUSD remains a popular stablecoin for traders. According to statistics from cryptocompare.com, the most popular trading pair for BUSD on Binance is currently Tether (USDT), followed by the Turkish Lira.
Paxos’ other stablecoin, pax dollar (USDP), has also lost 19.3% of its supply over the past 30 days, while a significant amount of pax gold (PAXG) has been withdrawn from circulation, with 11.3% of its circulating supply wiped during the same period. In contrast, Tether (USDT) has seen a 5.8% increase in supply and a market cap of over $70 billion.
The sudden reduction in BUSD supply has raised concerns among traders and investors. However, some analysts believe that this reduction in supply could lead to an increase in the value of BUSD, as a reduction in supply could lead to an increase in demand for the stablecoin.
The sudden reduction in the supply of the BUSD stablecoin has caused concern in the crypto community. While it remains to be seen how this supply reduction will affect the value of BUSD, traders and investors will be watching the situation closely.
Filed under: Bitcoin - @ February 20, 2023 3:24 pm