Binance USD (BUSD) Stablecoin has suffered big losses since January 2023. Its market supply has collapsed by 80% in the last six months.
As of June 26, BUSD has a capitalization of $4.243 billion. It has been overtaken by the token DAI, whose supply exceeds $4.717 billion.
According to CCData, BUSD’s capitalization fell 18% in May alone. This stablecoin accounts for about 5% of the funds accumulated in the fiat-backed digital currencies market.
The Binance exchange began to promote another stablecoin, TrueUSD (TUSD), which also dealt a heavy blow to BUSD’s position.
TUSD has a supply of $3.1 billion and ranks fifth in the ranking of digital currencies backed by fiat money.
TUSD is deployed on the etherium blockchain. Reserves used to cover the tokens are placed in several U.S. banks.
Recall that in February, Paxos announced the cessation of token issuance BUSD.
The reason for this decision was a lawsuit launched by the Securities and Exchange Commission (SEC). Holders of this Stablecoin will be able to convert it into fiat money until February 24, 2024.