In just six days, the availability of the BUSD stablecoin has decreased by 17.77%. On February 13, 2023, Paxos, the blockchain infrastructure platform that points to and manages it, announced that it will no longer mint the new BUSD. This announcement resulted in an unexpected increase in redemption volume, with $2.86 billion in BUSD redeemed within 6 days.
According to statistics, the availability of BUSD has decreased by 19.2% in the
Paxos’ other stablecoin, pax greenback (USDP), has also lost 19.3% of its supply over the last 30 days. A significant amount of pax gold (PAXG) has been withdrawn from circulation, with 11.3% of its circulating supply wiped out during the same period. Tether (USDT), on the other hand, has seen a 5.8% increase in supply and a market cap of more than $70 billion.
The unexpected drop in the value of the US dollar has caused concern among merchants and traders. Nonetheless, some analysts believe that this decrease in supply may result in a rise in the value of BUSD, as a reduction in supply may result in a surge in demand for the stablecoin.
The sudden drop in the supply of the BUSD stablecoin has caused concern in the crypto community. While it remains to be seen how this discount will affect the worth of the USD, merchants and traders will keep a close eye on the situation.
e last 30 days, indicating that the circulating supply of BUSD has significantly reduced. The circulation of BUSD is approximately 13,238,824,118 as of February 19, 2023, a decrease from the circulation of 16.1 billion before the announcement.
Nansen, a blockchain intelligence agency, has been closely monitoring the Paxos Treasury pockets, which sent hundreds of thousands of BUSD to the burn deal, effectively eradicating the stablecoin from circulation. According to Nansen’s Change Portfolio Device, Binance currently holds 10.9 billion BUSD as of February 19, 2023, making it the most actively traded alternate BUSD token.
BUSD still accounts for roughly 10.7% of the crypto economy’s $67.71 billion global trade volume over the previous 24 hours, indicating that BUSD remains a popular stablecoin for merchants. According to data from cryptocompare.com, the most popular buying and selling pair for BUSD on Binance is Tether (USDT), followed by the Turkish Lira.
