Since Paxos announced on February 13, 2023 that it would cease issuing the dollar-pegged stablecoin BUSD, approximately 4.98 billion BUSD have been redeemed and removed from circulation. The circulating supply tumbled from 16.1 billion to around 11.13 billion tokens, while the stablecoin maintained its peg to the U.S. dollar throughout the process.
Market Cap Slips Below Dogecoin
As of February 25, BUSD's market capitalization stood at $11.12 billion, slightly below Dogecoin's $11.24 billion. Consequently, BUSD lost its position among the top ten crypto assets by market cap, now ranking 11th, just above Lido Staked Ether (STETH). The stablecoin's share of the total $1.1 trillion crypto market fell from roughly 1.46% to 1.007%, marking a significant decline in dominance.
Binance Still Holds $9 Billion in BUSD
Binance's reserve portfolio showed the exchange held approximately $9.01 billion in BUSD. The stablecoin recorded a 24-hour trading volume of $6.84 billion, with Binance being the most active venue. The majority of trades were paired with Tether (USDT), while Turkish lira pairs accounted for 2.80% of all BUSD trades. Analysts attribute the redemption wave to regulatory concerns, as the SEC had warned Paxos about potential securities law violations. The future of BUSD may hinge on regulatory clarity and continued support from major exchanges like Binance.