{"id":582040,"date":"2023-05-03T19:03:58","date_gmt":"2023-05-03T18:03:58","guid":{"rendered":"https:\/\/en.ethereumworldnews.com\/?p=582040"},"modified":"2023-05-03T19:04:06","modified_gmt":"2023-05-03T18:04:06","slug":"busd-transactions-sink-to-2021-low","status":"publish","type":"post","link":"https:\/\/en.ethereumworldnews.com\/busd-transactions-sink-to-2021-low\/","title":{"rendered":"BUSD Transactions Sink To 2021-Low"},"content":{"rendered":"\n<p>Summary: <\/p>\n\n\n\n<ul><li>The number of wallets sending and receiving BUSD transfers slumped to a new two-year low on May 2, data from Glassnode showed.<\/li><li>Declining trading activity comes after U.S. regulators cracked down on stablecoin issuer and crypto trust company Paxos.<\/li><li>The Binance-branded token slumped further as protocols, investors, and platforms lost faith in the stablecoin.<\/li><li>Meanwhile, Tether&#8217;s USDT dominance over the stablecoin market strengthens while rival issuers navigate regulatory scrutiny and banking debacles.<\/li><\/ul>\n\n\n\n<p>Binance USD (BUSD) transactions <a href=\"https:\/\/twitter.com\/glassnodealerts\/status\/1653629274484613121?s=20\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/twitter.com\/glassnodealerts\/status\/1653629274484613121?s=20\" rel=\"noreferrer noopener nofollow\">dipped<\/a> to a fresh two-year low on May 2, 2023 months after regulatory scrutiny and widespread loss of faith punctured the stablecoin&#8217;s market cap. <\/p>\n\n\n\n<p>Glassnode data showed that Binance USD transactions have not declined to this level since mid-2021. The on-chain analytics firm used a seven-day moving average to track wallets sending and receiving BUSD. Both metrics indicated record-low levels. <\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img width=\"1024\" height=\"512\" src=\"https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2023\/05\/BUSD-Receiving-Wallets-by-Glassnode-1024x512.png\" alt=\"\" class=\"wp-image-582042\" srcset=\"https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2023\/05\/BUSD-Receiving-Wallets-by-Glassnode-1024x512.png 1024w, https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2023\/05\/BUSD-Receiving-Wallets-by-Glassnode-300x150.png 300w, https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2023\/05\/BUSD-Receiving-Wallets-by-Glassnode-770x385.png 770w, https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2023\/05\/BUSD-Receiving-Wallets-by-Glassnode-1536x768.png 1536w, https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2023\/05\/BUSD-Receiving-Wallets-by-Glassnode-2048x1024.png 2048w, https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2023\/05\/BUSD-Receiving-Wallets-by-Glassnode-561x280.png 561w, https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2023\/05\/BUSD-Receiving-Wallets-by-Glassnode-1146x573.png 1146w, https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2023\/05\/BUSD-Receiving-Wallets-by-Glassnode-1476x738.png 1476w, https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2023\/05\/BUSD-Receiving-Wallets-by-Glassnode-269x135.png 269w, https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2023\/05\/BUSD-Receiving-Wallets-by-Glassnode-746x373.png 746w, https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2023\/05\/BUSD-Receiving-Wallets-by-Glassnode-1376x688.png 1376w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" title=\"\"><figcaption><strong>Number of Wallets Sending Binance USD by Glassnode<\/strong><\/figcaption><\/figure>\n\n\n\n<h2>BUSD&#8217;s Fall<\/h2>\n\n\n\n<p>BUSD&#8217;s dwindling activity comes after its issuer Paxos was the subject of enforcement actions from two U.S. regulators. The crypto trust company received a <a href=\"https:\/\/en.ethereumworldnews.com\/sec-binance-stablecoin-paxos-busd\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/en.ethereumworldnews.com\/sec-binance-stablecoin-paxos-busd\/\" rel=\"noreferrer noopener\">Wells notice<\/a> from the U.S. Securities and Exchange Commission accusing Paxos of issuing unregistered securities. Paxos promised to litigate if necessary and &#8220;categorically&#8221; <a href=\"https:\/\/en.ethereumworldnews.com\/busd-issuer-paxos-in-discussion-u-s-sec\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/en.ethereumworldnews.com\/busd-issuer-paxos-in-discussion-u-s-sec\/\" rel=\"noreferrer noopener\">opposed<\/a> the SEC&#8217;s allegations. <\/p>\n\n\n\n<p>New York&#8217;s Department of Financial Services (NYDFS) ordered Paxos to cease issuing new BUSD tokens. Paxos is regulated by the NYDFS and can operate in New York&#8217;s jurisdiction. The company said redemptions would <a href=\"https:\/\/en.ethereumworldnews.com\/paxos-busd-binance-redemptions-till-2024\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/en.ethereumworldnews.com\/paxos-busd-binance-redemptions-till-2024\/\" rel=\"noreferrer noopener\">continue until February 2024<\/a> at the very least. <\/p>\n\n\n\n<p>DeFi protocols like <a href=\"https:\/\/en.ethereumworldnews.com\/aave-votes-offboard-busd-lending-pool\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/en.ethereumworldnews.com\/aave-votes-offboard-busd-lending-pool\/\" rel=\"noreferrer noopener\">Aave<\/a> lost faith in BUSD following the news. Community members proposed removing the stablecoin from lending pools and decentralized services. Platforms like Coinbase also <a href=\"https:\/\/en.ethereumworldnews.com\/coinbase-suspend-busd-trading-march-13\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/en.ethereumworldnews.com\/coinbase-suspend-busd-trading-march-13\/\" rel=\"noreferrer noopener\">moved<\/a> to delist the token. <\/p>\n\n\n\n<h2>Tether Solidifies Stablecoin Lead<\/h2>\n\n\n\n<p>Tether&#8217;s USDT, crypto&#8217;s largest stablecoin, continues to command the lion&#8217;s market share of the stablecoin ecosystem amid troubling times for rivals. At its peak, BUSD boasted over $23 billion in supply. This figure has dipped sharply to around $5 billion. <\/p>\n\n\n\n<p>USDT&#8217;s market cap alone is north of $82 billion. Tether&#8217;s closest competitor Circle (USDC) has a market cap of just above $30 billion. Tether is also reportedly minting significant amounts of new USDT tokens. <\/p>\n\n\n\n<p>Typically, Tether creates new USDT in response to increased demand, signaling the influx of fresh cash into the ecosystem often deployed to purchase Bitcoin, Ethereum, and other cryptocurrencies.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img width=\"619\" height=\"266\" src=\"https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2023\/05\/USDT_3M_graph_coinmarketcap.png\" alt=\"\" class=\"wp-image-582041\" srcset=\"https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2023\/05\/USDT_3M_graph_coinmarketcap.png 619w, https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2023\/05\/USDT_3M_graph_coinmarketcap-300x129.png 300w, https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2023\/05\/USDT_3M_graph_coinmarketcap-269x116.png 269w\" sizes=\"(max-width: 619px) 100vw, 619px\" title=\"\"><figcaption><strong><a href=\"https:\/\/coinmarketcap.com\/currencies\/tether\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/coinmarketcap.com\/currencies\/tether\/\" rel=\"noreferrer noopener nofollow\">Tether&#8217;s Market Cap by CoinMarketCap<\/a><\/strong><\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>Summary: The number of wallets sending and receiving BUSD transfers slumped to a new two-year low on May 2, data from Glassnode showed. Declining trading activity comes after U.S. regulators cracked down on stablecoin issuer and crypto trust company Paxos. The Binance-branded token slumped further as protocols, investors, and platforms lost faith in the stablecoin. Meanwhile, Tether&#8217;s USDT dominance over the stablecoin market strengthens while rival issuers navigate regulatory scrutiny and banking debacles. Binance USD (BUSD) transactions dipped to a [&hellip;]<\/p>\n","protected":false},"author":55,"featured_media":582044,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[2],"tags":[],"_links":{"self":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts\/582040"}],"collection":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/users\/55"}],"replies":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/comments?post=582040"}],"version-history":[{"count":2,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts\/582040\/revisions"}],"predecessor-version":[{"id":582045,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts\/582040\/revisions\/582045"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/media\/582044"}],"wp:attachment":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/media?parent=582040"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/categories?post=582040"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/tags?post=582040"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}