Six days ago, a few hours before blockchain infrastructure platform Paxos announced that it would no longer mint BUSD stablecoins, $2.86 billion worth of BUSD was redeemed. Binance is currently the most active BUSD token exchange, and the stablecoin still controls roughly 10.7% of the crypto economy’s $67.71 billion in global trading volume over the past 24 hours.
BUSD supply drops by 17.77% in 6 days
Statistics show that a significant amount of BUSD has been redeemed in the last six days, with the supply dropping by 17.77% during that time period. In the last 30 days, the supply of BUSD has been reduced by 19.2%. On February 13, 2023, Paxos, the company that issues, manages, and redeems BUSD, Announced that he would no longer mint new BUSD in the future.
Redemptions accelerated after Paxos made the announcement, with $290 million redeemed in eight hours. At the time of the announcement, there was $16.1 billion BUSD outstanding. As of February 19, 2023, there are approximately 13,238,824,118 BUSD in circulation, meaning that 17.77% of the BUSD redeemed represented the removal of 2.861 million tokens from the market.
Blockchain intelligence firm Nansen has been monitoring the Paxos Treasury wallet, which sends millions of BUSD to the burned address, effectively removing the stablecoins from circulation. According to Nansen exchange wallet toolBinance currently holds 10.9 billion BUSD as of February 19, 2023. Metrics show that BUSD still accounts for $7.24 billion of the day’s $67.71 billion in global trading volume, representing 10.7% of the total.
Binance dominates the majority of BUSD trading volume, and the most popular trading pair of the stablecoin today is Tether (USDT). According to cryptocompare.com statistics, 5.52% of BUSD volume on Sunday was also paired with the Turkish lira. Although BUSD had the most redemptions in the last 30 days, USDC saw 2.9% of its supply wiped out during that period.
In particular, Paxos’ other stablecoin, the pax dollar (USDP), has seen its supply dwindle by 19.3%. a significant amount of pax gold (PAXG) it has also been wiped out as 11.3% of the circulating supply has been wiped out in 30 days. On the contrary, tether (USDT) has seen its supply increase by 5.8%, resulting in a market capitalization of more than $70 billion.
What do you think the future holds for BUSD in light of these recent developments and exchanges? Share your thoughts in the comments section below.
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