• Paxos recently announced that it would no longer mint BUSD, resulting in 4.98 billion BUSD stablecoins being removed from circulation.
• As a result, the dollar-pegged crypto asset has fallen out of the top ten crypto assets by market capitalization and currently accounts for 1.007% of the crypto economy’s net value.
• The majority of BUSD trades have been paired with the stablecoin tether (USDT), while 2.8% of all trades have been paired with Turkish lira.
Paxos No Longer Minting BUSD
Paxos recently announced that it would no longer issue the dollar-pegged crypto asset BUSD, resulting in nearly $5 billion worth of BUSD stablecoins being removed from circulation to date. This has caused the asset to fall out of the top ten crypto assets by market capitalization, slipping below dogecoin’s valuation with a market cap of around $11.12 billion compared to the meme coin’s $11.24 billion.
Binance Reserve Portfolio and Trade Volume
On February 25th 2023, Binance’s reserve portfolio showed that it held $9.01 billion in total BUSD tokens and had a 24-hour trade volume globally amounting to around $6.84 billion USDT (tether). Of these trades, Binance was found to be the most active exchange for trading this asset according to CoinGecko stats; Tether accounted for most of these trades at over 90%, while 2.8% were paired with Turkish lira transactions..
BUSD Dominance In Crypto Economy Decreasing
At present, out of the total $1 trillion USD crypto economy, BUSD only accounts for 1%. This is a significant decrease compared to 12 days ago when this same figure stood at 4%. As such, it has officially been dropped from its previous position as one amongst the top 10 most valuable cryptos and now stands in 11th place behind Dogecoin (DOGE) and above Lido staked Ether (STETH).
Stablecoin Remains At Parity With US Dollar
Despite this sharp decrease in dominance over the past two weeks since its removal from circulation, BUSD remains pegged at parity with US dollars – which is an important factor considering its use as a medium for cross border payments and other financial applications such as lending or investments services within blockchain ecosystems .
In conclusion, we can see how Paxos’ decision to stop issuing new coins resulted in almost 5 billions worth of stablecoins being removed from circulation over just 12 days; this has caused a sharp decrease in its global market share within cryptospace as well as dropping it off from its former position amongst top 10 cryptocurrencies by market capitalization – yet despite this shift in dominance levels ,the coin remains fully backed by US Dollar parity meaning that users can still use it confidently across international boundaries without any fear regarding volatility or uncertainty regarding price fluctuations .