In short: Binance USD (BUSD) has seen its market capitalization fall by over 80% since November 2022, reported CCData. Binance has been promoting the adoption of alternative stablecoin, TrueUSD (TUSD), which has seen its trading volumes triple and grows in popularity as BUSD declines. In February 2023, NewsBTC reported that BUSD would cease to be issued as a stablecoin because of an ongoing lawsuit filed by the United States Securities and Exchange Commission (SEC). USDT's market capitalisation continues to rise, nearing its all-time high, as investors search for alternative options.
Our quick analysis:
Binance USD (BUSD) has seen a significant decline in its market capitalization in recent times. From November 2022 to June 2023, BUSD’s market cap plummeted from $23 billion to $4 billion, suffering an 18% loss in May alone. As BUSD's market capitalization reaches a critical level, traders are seeking alternative options.
TrueUSD (TUSD), as an Ethereum-based ERC-20 token, has emerged as a popular stablecoin option that assures a 1:1 convertibility with the US dollar. Its steadily growing popularity and trading volumes are a testament to the increasing demand for an alternative stablecoin option. Binance has taken notice of this and has begun promoting the adoption of TUSD, which has surpassed BUSD in terms of trading volumes.
Meanwhile, investors are flocking to Tether (USDT), as its market capitalization steadily approaches its all-time high, reaching close to $82.9 billion. Its stability and pegging to the US dollar provide traders with a reliable store of value. Additionally, USDT has become a preferred choice for traders, offering a secure means of preserving their capital during volatile market conditions.
As the market dynamics continue to change, traders are looking for alternative stablecoin options to diversify their portfolio. With the steep decline in BUSD’s market capitalization, investors are turning to the more stable options TUSD and USDT. As always, the market remains unpredictable, and traders must remain cautious and take informed decisions.
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Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
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