The Stablecoin Landscape is Changing After the BUSD was Suspended

Key Points: The US regulator has dealt a severe blow to BUSD, the third largest stablecoin and which holds a lot market share.
Market share of BUSD began to fall rapidly after it entered a “deflationary” destructive mode.
Stablecoins are slowly returning to their rightful place in the game, after BUSD.
BUSD, which had a market value in excess of tens and billions of dollars, was forced “surrender” to US regulators and to withdraw from the stablecoin stage. BUSD, which was backed by Binance, the world’s largest exchange, was the third-largest stablecoin and held a large market share. The competitive landscape of stablecoins has changed quietly with the BUSD quickly leaving the market. USDT temporarily gains the most. Looking at the entire stablecoin track USDT, USDC and BUSD once formed an adversary. It was full of gunpowder. BUSD is a latecomer and is aggressively advancing. BUSD is a latecomer and has been aggressively growing. It took it just 4 years to reach a market value exceeding $20 billion. Bloomberg reported that Circle (the issuer of USDC) reported to NYDFS in the fall of 2022, that Binance didn’t have enough reserves to support Paxos. BUSD tokens were issued, but Changpeng Zhao, Binance founder, did not believe that. The NYDFS initiated a regulatory action against BUSD. The reason is that Binance-Peg BUSD has not been authorized to be packaged. Paxos stopped issuing new BUSD tokens under the “long sword of supervision” and began to destroy tokens. Binance also decided to “abandon BUSD” as its main currency for transactions. Changpeng Zhao stated in the AMA that he had not yet considered issuing decentralized stablecoins. However, we are optimistic about nondollar and algorithmic stablecoins and expect to see more stablecoins based in euros, yen and Singapore dollars in the future. After BUSD entered the “deflation” mode of destruction, its market share began declining at an accelerated pace. According to DeFiLlama data on February 17, BUSD’s total market value dropped to $13.7 billion. This is a drop of more 15.1% in 7 days and a market share of only 10%. BUSD has dropped by 41.4% compared to its November 2022 peak of $23.4 billion. The market share for BUSD is only 10%. According to DeFiLlama data on February 17, the total market value for USDT rose to $70.1 billion since February 13th, when the regulatory news was published. This accounts for 51.4% market share. The market share has increased to more than 50%. The market value for USDC has increased by $500million, while the market share of 30% has not changed significantly from before. The market value of USDC has increased by $500 million, while the market share of 30.2% has not changed much from before. Many new stablecoin players have emerged in the last few years. They have attempted to compete with the “predecessors”, and there have been some bridges where the former waves beat down the latter. However, the market value for the entire stablecoin market has fallen by almost $300 million. However, there are still many projects that have risen against the trend. Apart from the USDT and USDC, which new stablecoin players may be able share the tens to billions of dollars of market value left after BUSD exits. The following will introduce stable currency projects with high market potential. Source: DefiLlamaDAIDAI, a decentralized stablecoin based on the U.S. Dollar, was created and managed by MakerDAO, allowing users the ability to mint collateralized assets using the Maker protocol. The DAI will be destroyed if the user wishes to redeem the pledged assets. A stability fee will also be charged. If the pledged assets’ value falls or the mortgage rate drops enough to trigger liquidation, the pledged items will be sold at a premium. A 13% penalty and handling fees will be applied. . DAI currently supports collateral in the form of BTC, ETH and LINK. The off-chain asset RWA was also included in the DAI market capitalization at $5.09 billion as of February 17. There are approximately $3.25 billion in external addresses, almost $470 million in cross-chain bridge, $540m in DEX, $370 million in the lending agreement, and nearly $470m in cross-chain bridge. DAI is a well-known and respected entity that is an integral part of the DeFi Lego universe. However, DAI’s collateral assets have been heavily reliant on USDC at the time of writing. MakerDAO co-founder Rune Christensen also noted that this is the most promising area for DAI. Rune Christensen, co-founder of MakerDAO, also suggested an “Endgame Plan” that would save DAI from regulators. He said that this would make it as independent as a world currency such as BTC. He also stated that if the agreement fails to reach 75% of DAI within three year Decentralized collateral threshold, he will turn the DAI stablecoin into free-floating assets. FRAX is mainly distributed on public chains like Ethereum, Arbitrum and Moonbeam, Fantom and Optimism. FRAX is mainly circulated on public chains such as Ethereum, Arbitrum, Moonbeam, Fantom, Optimism, and BSC. The original FRAX supports Ethereum circulation only. Users must pledge the appropriate stablecoins or FXS according the collateral rate of each system. The current mortgage rate is 92%. This means that $1 of FRAX will be backed by 92% collateral and the remaining 8% by the algorithm that manages FXS supply. The mortgage rate will adjust according to FRAX’s current price, which will be adjusted every hour and adjusted by 0.2% each. FRAX has been steadily growing over the years and has launched a DeFi product matrix. FRAX stable currency is not the only one. There are also the time-weighted average AMM Fraxswap and the lending market Fraxlend. Also, Frax has launched an algorithmic market-making programme AMOs. They also have encrypted native CPI stable currencies FPI and a cross-chain bridge Fraxferry. Recently, as the upgrade of Ethereum Shanghai is approaching, Frax has launched frxETH, an ETH liquid pledge derivative.USDPBefore BUSD, the earliest USD stablecoin issued by Paxos was PAX, which was later renamed USDP, approved and regulated by the New York State Department of Financial Services (NYDFS), and circulated in Ethereum and BSC, of which Ethereum accounts for 99.6% of the total. DeFiLlama data shows that USDP was seventh in market value at $760 million as of February 17. This is lower than the current circulation of $790 million. ChainEye data shows that USDP’s reserve net assets market value is $770million (as of 2022.11). The rest of the reserve funds, except for some U.S. dollars cash, are U.S. Treasury bills and U.S. Treasury-backed reverse purchase agreements with lower risk. TUSDTUSD is a stablecoin that Trust Token issued and supported by Stanford Venture Fund. It is also the first stablecoin to receive the MSB license from the US regulatory agency. It reduces counterparty risk through the use of trust and bank partners. Legal protection is provided by the underlying asset. TUSD and TRON collaborated previously to launch the RMB stable currency offshore TCNH. Chaineye data shows that the value of TUSD’s reserve assets (November 2022), is $810 million. This is more than the $806 million circulation at the time. According to DeFiLlama data on February 17, TUSD’s circulation market value was $960million, an increase of 28% over the beginning of the year. TUSD is currently circulated on public chains like Ethereum, TRON and BSC. TRON and Avalanche share 55.3% and 42.1% respectively. Native TUSD is based only on Tron, Tron and BSC. USTCThe predecessor to USTC is the algorithmic stablecoin, UST. It once had a market worth tens of millions of dollars. After the collapse of Terra, a new Terra 2.0 chain was created through community voting in May 2022. The old chain was renamed Terra Classic and the algorithmic stable currency function retained. USTC was renamed USTC. USTC’s $1 peg (currently at $0.027) was never reset, but the community is currently working to re-peg it to its original $1 value. According to DeFiLlama data as of February 17, USTC’s market value has increased by 309% from a minimum of $66 million after the storm to $270 million. Terra Classic’s proposal 11324, “Re anchoring LUNC, UST” was approved recently. This proposal describes an operational framework that allows the LUNC community from code, consensus and guidelines to re-bind UST. The ultimate goal is to restore the value lost in the May 2022 “decoupling event”. LUSDLiquity, a decentralized lending protocol, allows only interest-free loans against ETH. ETH is the only asset that can serve as collateral and borrowers must maintain a minimum of 110% collateralization ratio. LUSD is mainly circulated via chains such as Ethereum and Optimism. It is also used to fund other projects like Arbitrum, Polygon, Polygon, Polygon, and Polygon. SNX stakers can get the Synthetix protocol benefits. With the launch of Synthetix V3, there will be more collateral types. According to DeFiLlama data on February 17, the total market price of sUSD was $120million, an increase of 16.5% since the beginning of the year. sUSD circulates mainly on public chains like Ethereum, Optimism and Fantom. agEUR allows users, after paying a small fee, to freely mint stablecoins and redeem collateral according the price of an oracle machine. The agreement also includes a lending module that allows users to borrow agEUR using assets such as USDC, MATIC, wETH and MATIC. Angle will also launch $agGOLD. This stablecoin is pegged to one ounce gold and has a market capitalization exceeding US$28.8 millions. There are also euro stablecoins, in addition to agEUR. PANews also reviewed the issuance mechanism, scale, and application of several large euro stablecoins. It was officially launched on Ethereum Goerli’s test network using aTokens to secure the collateral. GHO will be created either by users or borrowers. To mint GHO, they will need to provide collateral at a specified collateral rate. The GHO protocol will wipe out the user’s GHO after the user has repaid the loan or liquidated it. All interest generated by GHO minters will be transferred to the Aave DAO Treasury. GHO introduces the concept for a facilitator. This facilitator can create and destroy GHO tokens, without trust. GHO also introduces the concept of a facilitator, which can generate and destroy GHO tokens without trust. CrvUSD’s core feature is that it is secured by LP tokens. It also uses a new liquidation algorithm LLAMMA (Lending Liquidation Automated Market Maker Algorithm) in order to solve the bad debt problem resulting from the liquidation of collateralized loans positions. The collateral is sold in a curvilinear fashion Stablecoin collateral to protect against sudden drops of the collateral’s value. Additionally, crvUSD has functional features like liquidity intervals or EMA oracles. We encourage you to do your own research before investing.Join us to keep track of news: NewsTags: agEURBUSDcrvUSDDAIFRAXGHOLUSDStablecoinsUSDTUSDUSDCUSDPUSDTUSTC