Six days ago, hours before blockchain infrastructure platform Paxos announced it would no longer mint BUSD stablecoins, $2.86 billion worth of BUSD The company has since redeemed $3.6 billion worth of BUSD. Currently, Binance is the most active exchange trading BUSD tokens, and the stablecoin still commandeers about 10.7% of the $67.71 billion in global trading volume in the crypto economy over the past 24 hours.
BUSD supply shrank 17.77% in six days
Statistics show that a significant amount of BUSD has been redeemed in the past six days, during which time the supply has shrunk by 17.77%. Over the past 30 days, the supply of BUSD has shrunkby 19.2%. On February 13, 2023, Paxos, which issues, manages, and redeems the BUSD,announcedthat it would not be minting new BUSD in the future.
After Paxos’ announcement, redemptions proceeded apace, with $290 million redeemed within eight hours. At the time of the announcement, $16.1 billion in BUSD had been issued; as of February 19, 2023, there were approximately13,238,824,118 BUSD in circulation, meaning that 17.77% of BUSD had been redeemed, removing 2.861 billion tokens from the market.
blockchain intelligence firm Nansen monitors the Paxos Treasury wallet, sending millions of BUSD to burn addresses, effectively removing stablecoins from circulation.Nansen’sexchange portfolio Toolshows that Binance currently holds 10.9%; Binance currently holds 10.9 billion BUSD as of February 19, 2023. According to the index, BUSD still accounted for $7.24 billion of the $67.71 billion in global trading volume on that date, which represents 10.7% of the total.
Binance controls most of BUSD’s trading volume, and the stablecoin’s most popular trading pair today is Tether (USDT), according to cryptocompare.com statistics. 5.52%of Sunday’s BUSD volume was also paired with the Turkish lira; although BUSD had the most redemptions in the past 30 days, USDC saw 2.9% of its supply removed during that period.
Notably, Pax Dollar (USDP), Paxos’ other stablecoin, saw its supply drop by19.3%. Pax Gold (PAXG)has also been removed in significant volume, with 11.3% of its circulation erased in 30 days. Tether (USDT), on the other hand, saw a 5.8% increase in supply and a market capitalization of over $70 billion.
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