BUSD stablecoin drops from top 10 crypto assets amid sharp drop in dominance – altcoins

After Paxos announced the stablecoin BUSD unminted, 4.98 billion BUSD stablecoins have been phased out to date. The stablecoin managed by Paxos is also after market capitalization dropped out of the top ten crypto assets, slipping below the valuation of with a market cap of around $11.12 billion compared to the meme Dogecoin coinThat’s $11.24 billion.

BUSD Redemption: Nearly $5 billion worth of stablecoins have been phased out in 12 days

Almost $5 billion worth of BUSD stablecoins have been redeemed since Paxos announced on February 13, 2023 that it would no longer issue dollar-pegged crypto asset BUSD. There were about 16.1 billion BUSD coins in circulation at the time of the announcement, but today there is about 11,129,348,406 BUSD coins in circulation. Over the past 12 days and the BUSD 4.98 billion redemption, the dollar-pegged crypto-asset has remained at par with the US dollar.

On February 25, 2023, Binance’s reserve portfolio showed that the crypto exchange held $9.01 billion in BUSD. Globally, BUSD had around $6.84 billion in 24-hour trading volume, with Binance being the most active BUSD exchange, according to statistics from coingecko.com. The majority of BUSD trades have been made with the stablecoin Tether (USDT) pegged while the Turkish lira still accounted for 2.80% of all BUSD trades on Saturday.

Currently, BUSD accounts for 1.007% of the total value of the $1.1 trillion crypto economy. This dominance has decreased significantly over the past 12 days, and BUSD was officially removed from the top ten crypto coin positions this weekend. As of this writing, BUSD is the 11th largest market valuation out of thousands of crypto assets in existence, with a market cap below Dogecoin (DOGE) and via Lido Stakes Ethereum (STETH).

What are your thoughts on the nearly $5 billion worth of BUSD stablecoins redeemed in the last 12 days that caused the asset to fall from the top ten positions? Do share your thoughts on this topic in the comments section below.

Jamie Redman

Jamie Redman is the news director at Bitcoin.com News and a Florida-based financial technology journalist. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for bitcoin, open source code and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about today’s emerging disruptive protocols.

photo credit: Shutterstock, Pixabay, WikiCommons