Stablecoins: Is BUSD chomping away on USDC dominance?
Towards the end of September, the largest crypto exchange Binance de-listed all USD Coin [USDC], TrueUSD [TUSD], and Pax Dollar [USDP] denominated trading pairs. Right after that, it officially started auto-converting deposits into the exchange’s native stablecoin BUSD. The said 1:1 conversion measure was taken to enhance liquidity and capital efficiency for the users. The delisting and conversion, however, impacted the market share of volume across all global exchanges . A recent analysis from Kaiko revealed, USDC, as of now, has seen a considerable drop in market share for BTC vs. stablecoin transactions, falling from 2.79% to just .5%, which shows that Binance accounted for a majority of USDC volume on centralized exchanges. On the other hand, since the auto-conversion, BUSD’s global market share—when compared against USDT and USDC—has increased from ~20–21% to 26%. Source: Kaiko The auto-conversion was executed after USDC’s market capitalization tumbl...