Binance USD (BUSD), the United States dollar-backed stablecoin, has fallen to fourth position in terms of market capitalisation with regard to other stablecoins. The development happened after the stablecoin sustained a downfall of one billion dollars in the previous 30 days, with insights from CoinMarketCap, as stated by Cointelegraph.
According to Cointelegraph, BUSD market capitalisation stood at $4.3 billion, from being $5.54 billion. Reportedly, BUSD’s market value has been falling since December, 2022, in comparison to when its market capitalisation was $23 billion.
Based on Cointelegraph’s data, fall in BUSD market capitalisation has been correlated with updates concerning Binance after FTX debacle, which happened in November, 2022. As per a December, 2022, report, it was suggested that US Department of Justice would target Binance which caused $3.6 billion worth withdrawals within a week. From what it’s understood, the exchange resulted in BUSD redemptions on account of market makers.
Moreover, Cointelegraph noted that recent developments around SEC and Binance controversy has also impacted the stablecoin, due to alleged supply of unregistered securities. It’s believed that SEC charged Binance with 13 counts, along with unaccounted transactions around BNB and BUSD tokens.
(With insights from Cointelegraph)