Paxos has been ordered to stop issuing Binance’s BUSD stablecoin, and the crypto market has already picked its big winner. Tether’s USDT has garnered $1 billion in capitalization since yesterday, thanks to investor flight. The king of stablecoins has just further consolidated its position.
Investors flee from BUSD to Tether’s USDT
Although Changpeng Zhao, the CEO of Binance, was reassuring, the news that fell earlier this week put a stop to the BUSD. Binance’s stablecoin, which dreamed of being a serious competitor to Tether’s USDT, is in trouble. We explained it to you yesterday, the exchange platform saw more than a billion dollars of stablecoins leaving its coffers yesterday, in a great movement of panic among users.
And the winner is… Tether. The capitalization of USDT has indeed taken more than a billion dollars since yesterdaya sign that the ex-BUSD supporters have taken refuge in the arms of the largest stablecoin of the moment:
USDT Capitalization Explodes Since Binance’s BUSD Struggles Started
The capitalization of BUSD shows the opposite movement. While it reached 16 billion dollars on February 12, it has shrunk to $15 billion This morning.
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Tether (USDT), undisputed king of stablecoins
If there is one constant in the world of cryptocurrencies, it is the almost supernatural ability of Tether to continue to exist and bring investors together, despite the scandals and doubts that have marred its existence. His USDT stablecoin just proved he was king again, and its market dominance of “stable” cryptos now exceeds 50%.
The trend is not found as much in the USDC of Circle, the second largest stablecoin at the moment. It has actually also lost momentum: its market cap exceeded 41 billion dollars on February 12, but it fell to 40 billion dollars this morning.
Why this investor favor for Tether? The reason seems partly geographical. Paxos and Circle (the issuer of USDC) are both located in the United States, where the SEC prowls. As for Tether, it is located in Hong Kong, and is therefore not reachable by the American financial policeman. Something to remind us that despite the ideals of decentralization carried by cryptocurrencies, geographical location plays a significant role.
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Sources: TradingView, CoinGecko
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Journalist at Cryptoast, I fell into the pot of cryptocurrencies a few years ago. I am passionate about the innovative technologies that stem from the blockchain and I like to find the most crispy information to share with you.
Marine Debelloir
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