The stablecoin battle is becoming more and more fierce as Binance USD (BUSD) falls out of the top 10 by capitalization. Meanwhile, Tether (USDT) holds more than 50% of the market share, but can it last long when other competitors are not inferior?
Like Kyptos reported, BUSD is gradually “disappearing” from the stablecoin map in the market after Paxos received a “death sentence” from the US government. Although Paxos is committed to maintaining the margin and redeming BUSD to fiat, it can be seen that the market share of this stablecoin is on a serious decline.
Because of not being able to mint new coins plus Paxos constantly burning coins, the current supply of BUSD is only about 10.98 billion tokens, down nearly 31% within the past 30 days.
🔥 🔥 🔥 🔥 🔥 🔥 140,000,000 #BUSD (140,000,000 USD) burned at Paxos Treasuryhttps://t.co/0cvJVREUvX
— Whale Alert (@whale_alert) February 27, 2023
This directly reflects the stablecoin’s market capitalization ranking. Capital before the scandal broke out, BUSD ranked 6th in terms of market capitalization, but now it has slipped out of the top 10, stopping at 11th place according to the market capitalization. CoinGecko.
Some people go down, some people up. Tether (USDT) is the coin that receives the most benefit when it continues to maintain its unique position. According to DefiLlamathe total supply of USDT was about 5% increase within the past 30 days, bringing the stablecoin’s market cap to $70.9 billion.
With the total capitalization of the stablecoin array falling at about $135.4 billion, that means Tether directly occupies 52.3% market share.
In second place is the USD Coin (USDC) issued by Circle. Despite being involved in rumors of “indicating” Paxos-BUSD to New York officials, Circle has stood firm in recent times. USDC capitalization is currently about 42.2 billion USD, equivalent to 31.2% market share pie.
Another stablecoin that is getting a lot of attention is TrueUSD (TUSD). The community thinks that Binance is shifting its focus to TUSD after being unable to “do business” with BUSD anymore, as Binance printed a large amount of stablecoin TUSD on February 17.
On a 30-day timeframe, the supply of TUSD 16% increase, bringing the market capitalization to the milestone of 1.1 billion USD. Currently, TrueUSD holds 0.8% market share – ranking 5th after USDT, USDC, BUSD and DAI.
It is predicted that in the near future, the stablecoin battle will become increasingly fierce with the participation of new faces such as Curve’s crvUSD, Aave’s GHO or Fantom’s fUSD.