The stablecoin landscape witnessed a shifting dynamic this week, with the once fourth-largest stablecoin, binance usd (BUSD), relinquishing its position. This change arises from the crypto asset’s supply dwindling below the 3 billion mark, while in a surprising twist, the stablecoin trueusd (TUSD) experienced a surge in supply from 2.9 billion to 3.438 billion in three days. These developments unfolded shortly after Binance’s announcement of a gradual phase-out plan for the dollar-pegged token BUSD.
BUSD Supply Sinks Below the 3 Billion Threshold
Binance usd, abbreviated as BUSD, has fallen below the 3 billion mark, as data from etherscan on September 3, 2023, reveals a decrease in supply to 2.844 billion BUSD. The once-prominent stablecoin issued by Paxos has ceded its standing as the fourth-largest stablecoin, now ranking fifth among the top ten dollar-pegged coins by market valuation. Binance declared three days ago that it would gradually phase out BUSD, discontinuing trading pairs for the stablecoin due to U.S. regulators instructing Paxos to halt token issuance.
While BUSD’s supply contracted, two other stablecoins, TUSD and FDUSD, have witnessed growth over the past 72 hours. Notably, nine out of the top ten stablecoins recorded supply reductions last month, with FDUSD expanding by over 40%. Although TUSD’s supply contracted by 3.8% in August, it surged from 2.9 billion to the current 3.438 billion TUSD between August 31 and September 3, marking an 18.55% increase over three days. Nansen analytics approximates that Binance holds around 2.782 billion TUSD.
Furthermore, the supply of the stablecoin first digital usd (FDUSD) was 327 million on August 31, 2023; as per etherscan data, the supply has now grown to 382,548,919 FDUSD. Etherscan statistics from September 3 indicate that Binance controls approximately 99.4397% of the FDUSD supply. Even the top six wallets, collectively representing 84.2% of the entire BUSD supply, are categorized as Binance-controlled wallets. Binance commands a significant portion of all three aforementioned stablecoins – BUSD, TUSD, and FDUSD.
The reserves of these three stablecoins, held within the crypto exchange, amass a value of $6.664 billion. Additionally, Nansen analytics reveal that out of the total existing 82.89 billion tether (USDT) circulating, Binance holds 18.10 billion USDT. This implies that Binance, the leading crypto asset in trade volume, controls 21.83% of the circulating tether supply. Among these stablecoins, the collective stash constitutes $24.764 billion of Binance’s $56.04 billion crypto reserves, signifying that the four dollar-pegged tokens constitute 44.18% of the trading platform’s entire asset balance.