- The market cap of Binance USD (USD) stablecoin has declined by $2.45 billion.
- Over $2.37 billion has moved from BUSD to Tether (USDT).
- USD Coin (USDC) has also seen its market cap shrink by about $739 million amid the regulatory events of the past few days.
Binance CEO Changpeng ‘CZ’ Zhao says the Tether has benefited most from the recent regulatory action against Binance USD (BUSD) and its issuer Paxos. But CZ reiterates that Binance does not issue BUSD.
Over $2.37 billion has moved from BUSD to USDT
As the negative impact of the order stopping Paxos from issuing BUSD jolted the crypto market, the flow of funds from the Binance branded dollar-pegged stablecoin ended with the USDT market capitalization gaining as BUSD’s declined.
In a tweet on Friday, Zhao noted that BUSD’s market cap had so far declined by over $2.45 billion and that most of it has gone into Tether’s stablecoin. The Binance chief noted that at least $2.37 billion in BUSD value had moved to USDT as traders sought to move capital from the Paxos-issued token.
BUSD market cap dropped -$2.45B (from 16.1B to 13.7B as of now), and most of it has moved to USDT.
USDT marketcap + 2.37B (From 67.8B to 70.1B)
USDC also declined -739M (from 42.3B to 41.5B)
Landscape is shifting.
(Note: BUSD is NOT issued by Binance.) pic.twitter.com/kVrZUYjuOh
– CZ 🔶 Binance (@cz_binance) February 17, 2023
According to Zhao, there’s a shift in the stablecoin market and the rotation of capital into the world’s largest stablecoin is an indication of that change.
While BUSD had managed to regain its dollar peg as of writing, the negative view following the regulatory crackdown means traders see USDT as the better alternative.
Tether’s release of another $1 billion of USDT recently points to this outlook and as Zhao acknowledges, even USD Coin (USDC) has seen its market cap drop by over 739 million over the past few days.
Meanwhile, Binance has reportedly minted $50 million of True USD (TUSD) stablecoin, helping to push the price of TrueFi (TRU) higher. At the time of writing, the token was trading at $0.084, having gained a massive 88% in the past 24 hours.