Massive Reshuffle In Crypto Market As Binance’s USD Depegs To Teether
Binance’s BUSD stablecoin capitalization continues to drop as users convert their BUSD stabilizecoins into Tether’s USDT. The New York Department of Financial Services ordered Paxos Trust Co. to stop creating more Binance’s dollar pegged stablecoins.
Changpeng Zhao, Binance CEO, tweeted that users are now migrating to stablecoins. Binance will make product adjustments to accommodate this change, including the removal of BUSD as the primary pair for trading. Binance will still support BUSD in the foreseeable future.
In the end, Binance USD (BUSD), depegs to USDT (USDT). BUSD’s market cap fell amid uncertainty. USDT’s market cap, however, has risen to $68.58 billion as of February 13. Circle’s USD Coin market cap (USDC), however, shows no upside movement, indicating that most conversions are to USDT.
BUSD-USDT Price. Source: TradingView. Data also revealed that USDT accounted nearly 14% of 3pool TVL in Curve, with a TVL at $537 million, which is the lowest since April 2022. It also suggests that users are converting their USDT to stablecoins. Curve 3pool has generated $242 million in trading volume over the last 24 hours with a liquidity utilization rate of 45%.
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Tether’s CTO Paolo Ardoino took to Twitter to announce that USDT stablecoin’s market share has surpassed 50% for the first-time in 14 months.
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Tether recently reported a $700 Million profit in the fourth quarter. This was largely due to reducing its secured loans and eliminating commercial paper exposure. The USDT market cap was recovered in January thanks to an increase in USDT transactions.
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