BUSD Falls to Fifth Among Stablecoin Leaders; TUSD and FDUSD Supplies Surge in a 3-Day Span

The stablecoin landscape witnessed a shifting dynamic this week, with the once fourth-largest stablecoin, binance usd ($BUSD), relinquishing its position. This change arises from the crypto asset’s supply dwindling below the 3 billion mark, while in a surprising twist, the stablecoin trueusd ($TUSD) experienced a surge in supply from 2.9 billion to 3.438 billion in three days. These developments unfolded shortly after Binance’s announcement of a gradual phase-out plan for the dollar-pegged token $BUSD.

$BUSD Supply Sinks Below the 3 Billion Threshold

Binance usd, abbreviated as $BUSD, has fallen below the 3 billion mark, as data from etherscan on September 3, 2023, reveals a decrease in supply to 2.844 billion $BUSD. The once-prominent stablecoin issued by Paxos has ceded its standing as the fourth-largest stablecoin, now ranking fifth among the top ten dollar-pegged coins by market valuation. Binance declared three days ago that it would gradually phase out $BUSD, discontinuing trading pairs for the stablecoin due to U.S. regulators instructing Paxos to halt token issuance.

$BUSD now ranks fifth among the top stablecoin asset by market capitalization on September 3, 2023.

While $BUSD’s supply contracted, two other stablecoins, $TUSD and $FDUSD, have witnessed growth over the past 72 hours. Notably, nine out of the top ten stablecoins recorded supply reductions last month, with $FDUSD expanding by over 40%. Although $TUSD’s supply contracted by 3.8% in August, it surged from 2.9 billion to the current 3.438 billion $TUSD between August 31 and September 3, marking an 18.55% increase over three days. Nansen analytics approximates that Binance holds around 2.782 billion $TUSD.

Furthermore, the supply of the stablecoin first digital usd ($FDUSD) was 327 million on August 31, 2023; as per etherscan data, the supply has now grown to 382,548,919 $FDUSD. Etherscan statistics from September 3 indicate that Binance controls approximately 99.4397% of the $FDUSD supply. Even the top six wallets, collectively representing 84.2% of the entire $BUSD supply, are categorized as Binance-controlled wallets. Binance commands a significant portion of all three aforementioned stablecoins – $BUSD, $TUSD, and $FDUSD.

The reserves of these three stablecoins, held within the crypto exchange, amass a value of $6.664 billion. Additionally, Nansen analytics reveal that out of the total existing 82.89 billion tether ($USDT) circulating, Binance holds 18.10 billion $USDT. This implies that Binance, the leading crypto asset in trade volume, controls 21.83% of the circulating tether supply. Among these stablecoins, the collective stash constitutes $24.764 billion of Binance’s $56.04 billion crypto reserves, signifying that the four dollar-pegged tokens constitute 44.18% of the trading platform’s entire asset balance.