- Dogecoin surpasses BUSD amidst Paxos’ SEC troubles
- BUSD’s market cap drops to $9.5B; Paxos stops new token issuance.
- Investors redeemed $6.7B BUSD since Feb 13 amid SEC’s planned lawsuit.
Dogecoin (DOGE) has overtaken Binance USD (BUSD) as the ninth-largest cryptocurrency by market capitalization. The development comes after CoinGecko data revealed that BUSD, the stablecoin issued by Paxos under the brand of the world’s largest cryptocurrency exchange by trading volume, experienced a significant decline in market capitalization.
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Source: CoinGecko
On Friday, BUSD’s market cap dropped to $9.3 billion, marking the first time since June 2021 that its supply has fallen below $10 billion. The decline in BUSD’s demand can be attributed to Paxos’ decision to stop minting new BUSD tokens, following directives from the New York Department of Financial Services.
The U.S. Securities and Exchange Commission (SEC) had reportedly planned to sue Paxos for providing unregistered securities. Investors have redeemed approximately $6.7 billion worth of BUSD from Paxos since February 13, as per blockchain data from Nansen.
In other developments, Binance, the biggest cryptocurrency exchange in the world, has produced Tether Dollar (TUSD) worth $130 million over the last seven days. This places it behind USD Coin (USDC), Tether USD (USDT), True USD (TUSD), and Paxos Standard Token as the fifth-largest stablecoin. TUSD’s market capitalization is currently $1.12 billion, up 15% from the previous week.
The crypto industry should be encouraged by Binance’s decision to increase the production of TUSD since it would increase market liquidity and decrease volatility. Also, it gives consumers more trading options, which may aid in lowering slippage and raising efficiency. Also, the rising interest in using cryptocurrencies as a medium of exchange, indicated by the increased demand for stablecoins, is encouraging for the sector.
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