According to Coinmarketcap, Binance USD (BUSD), has declined its market presence, dropping out of the top five stablecoins ranking.
Over the past weekend, the circulating supply of BUSD dropped to below 1 billion tokens. This marks a drop for BUSD, which had once reached a top supply of 23.45 billion tokens.
The decline in market position can be attributed to several factors. Last year, the US Securities and Exchange Commission (SEC) took legal action against the exchange, classifying BUSD as a security.
Simultaneously, the New York Department of Financial Services prohibited the issue of new tokens, prompting BUSD issuer Paxos to further production of the asset.
Binance began promoting alternative stablecoins, notably TrueUSD (TUSD) and First Digital USD (FDUSD). On January 5, Binance officially announced the completion of an automatic conversion process, migrating eligible users’ BUSD balances to FDUSD.
The exchange also discontinued support for BUSD withdrawals, advising users to manually exchange their BUSD for FDUSD at a one-to-one ratio using Binance Convert.
The reshuffling of the stablecoin market now sees TUSD and FDUSD, heavily initiated by Binance, entering the top five stablecoins and reshaping the landscape.
However, Tether’s USDT maintains its dominant position, holding approximately 70% of the market share with a market capitalization exceeding $90 billion, while Circle’s USDC follows with a substantial market cap of $24.56 billion.
Tom Wan, a researcher at 21Shares, has also emphasizes that for a stablecoin to challenge the leaders effectively, it must integrate into centralized exchanges, become a part of DeFi platforms, and find payment and services applications.
Also Read: Stablecoin Boom: Tether’s Market Cap Reaches $93B With New $1B Min
