BUSD Market Cap Falls Below $10B
The supply value of Binance USD (BUSD) has dropped to a low of $9.7 billion, the first time since late June 2021, according to CoinGecko data.
The stablecoin is currently ranked third, behind USDT and USDC. In February last year, the NYDFS launched an investigation into BUSD issuer Paxos, which then halted issuance and broke its ties with Binance.
This was followed by threats of a lawsuit from the SEC, and Circle filed a complaint with the NYDFS regarding the reserve management. The Aave protocol community discussed freezing BUSD as collateral, and Coinbase suspended trading of the stablecoin.
Despite the regulatory pressure, Matrixport’s research head Markus Thielen sees no risks for other “stablecoins”. Binance CEO Changpeng Zhao has also predicted an increase in the number of non-dollar stablecoins.
