In February, the Coinbase exchange announced its intention to stop operations with the Binance USD (BUSD) stabelcoin.
After this announcement, investors began to withdraw capital from this digital asset. As a result, the capitalization of BUSD fell below $10 billion for the first time since June 2021.
Whale wallets took the lion’s share of funds out of Stablecoin. Even before reports of the lawsuit against Binance surfaced, traders began withdrawing BUSD tokens from the trading floor.
Over the past 30 days, the outflow of BUSD from exchange wallets on Binance exceeded $800 million. According to CryptoQuant, investors took another $500 million from BUSD in the last 24 hours, bringing the capitalization of the digital currency with fiat collateral down to $7.713 billion.
As Hochan Chung, head of research at CryptoQuant, noted, traders have likely begun to reallocate capital to other stablecoins, such as TrueUSD (TUSD) and USD Coin (USDC).
Thanefield Capital found that before the CFTC’s lawsuit was published, large movements of funds in the cryptosphere began, primarily in stabelcoin.
And investors withdrew coins not only from Binance, but also from other platforms such as Kraken and Coinbase.