• Binance CEO Changpeng ‚CZ‘ Zhao has commented on the recent decline in market cap of Binance USD (BUSD) stablecoin, as well as the rise of Tether’s (USDT) and USDC.
• Over $2.45 billion has moved from BUSD to USDT and USDC’s market cap dropped by over 739 million amid the regulatory events of the past few days.
• CZ noted that most of the money moved from BUSD went into Tether’s stablecoin, due to traders seeking a more reliable alternative amidst negative views on BUSD following its regulatory crackdown.
Binance CEO Comments on Stablecoin Market
Binance CEO Changpeng ‚CZ‘ Zhao has commented on the recent decline in market cap of Binance USD (BUSD) stablecoin, as well as the rise of Tether’s (USDT) and USDC. With a decrease in value for BUSD, over $2.45 billion has been moved from this token to other major stablecoins such as USDT and USDC.
Regulatory Events Impact Stablecoin Market
The shift in the stablecoin landscape is attributed to regulatory events within the crypto space that have caused a decline in value for certain coins like BUSD. As a result, over $2.37 billion was shifted away from this token into USDT and USDC saw its market cap shrink by about $739 million amid these events.
Traders Move Capital Into USDT
Due to traders seeking a more reliable alternative amidst negative views on BUSD following its regulatory crackdown, most of the money moved from this token went into Tether’s stablecoin, with its market capitalization gaining significantly due to this move. Moreover, Tether recently released an additional $1 billion worth of their token which further supports this view.
Binance Mints True USD
In order to increase liquidity within other tokens associated with their platform such as TrueFi (TRU), Binance reportedly minted $50 million worth of True USD (TUSD). This helped push up TRU prices significantly with it currently trading at around $0.084 – representing an 88% gain since then announcement was made public last week..
In conclusion, we can see how regulatory changes have had an effect on both capital flows between different stablecoins and prices for certain tokens like TRU associated with them thanks to liquidity provided by these coins shifting between them