Last Updated on February 20, 2023 by Bitfinsider
According to statistics, a sizeable portion of BUSD has been redeemed in the last six days, with the supply falling by 17.77% in that time. The supply of BUSD has decreased by 19.2% over the last 30 days. The firm that issues, manages, and redeems BUSD, Paxos, declared on February 13, 2023, that it would stop creating new BUSD going forward.
Following Paxos’ statement, redemptions picked up steam and $290 million were redeemed in just eight hours. The total amount of BUSD in circulation at the time of the announcement was $16.1 billion. There are roughly 13,238,824,118 BUSD in circulation as of February 19, 2023, therefore the 17.77% of BUSD that were redeemed resulted in 2.861 billion tokens being taken off the market.
The Paxos Treasury wallet, which transfers millions of BUSD to the burn address to effectively remove the stablecoins from circulation, has been observed by blockchain intelligence company Nansen. As of February 19, 2023, according to Nansen’s exchange portfolio tool, Binance held 10.9 billion BUSD. Data indicates that BUSD continues to make up $7.24 billion of the $67.71 billion in worldwide trade volume for the day, or 10.7% of the total.
The majority of BUSD trading activity is dominated by Binance, with tether currently being the stablecoin’s most popular trading pair (USDT). Cryptocompare.com data shows that 5.52% of BUSD volume on Sunday was also traded against the Turkish lira. BUSD had the most redemptions in the previous 30 days, yet 2.9% of USDC’s supply was destroyed during that time.
Notably, the quantity of Paxos’ other stablecoin, pax dollar (USDP), has dropped by 19.3%. In addition, a sizeable amount of pax gold (PAXG) has been lost, since 11.3% of the available supply has been destroyed in the last 30 days. Tether (USDT) has a market capitalization of over $70 billion, in contrast, as a result of its supply growing by 5.8%.
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