The BUSD FUD Has Created This Stablecoin! Its Value Increased by 1 Billion Dollars!

Largest stablecoin by circulating supply Tether’s USDT, rival of crypto investors, which came under regulatory scrutiny earlier this week From Binance USD (BUSD) approximately at market value 1 billion dollars increase occurred.

Tether’s USDT Earns $1 Billion As Paxos Burns Over $1.8 Billion in Binance USD Stablecoin

The increase comes at a time when BUSD issuer Paxos is facing increased regulatory scrutiny.

The market cap of USDT has increased from $68.5 billion to $69.5 billion since Monday, according to cryptocurrency price tracker CoinGecko.

This is the highest since the crypto market turmoil last June when investors bet on Tether’s collapse.

Tether’s latest gains came as BUSD, which is issued by Paxos under the brand of stock market giant Binance, shrunk rapidly.

Blockchain data from crypto intelligence firm Nansen shows that Paxos has burned more than $1.8 billion in BUSD since Monday morning.

According to CoinGecko data, the market cap of BUSD fell 11% from $16.1 billion to $14.3 billion during this period.

The $136 billion stablecoin market has been shaken as US regulators put pressure on Paxos and the third-largest stablecoin, BUSD.

On Monday, Paxos announced that it would cease printing BUSD after February 21, citing orders from the New York Department of Financial Services (NYDFS).

Stablecoins are a type of cryptocurrency whose price is pegged to an external asset such as the US dollar. If demand for a stablecoin declines, issuers reduce supply by removing the tokens from circulation through a practice called burning to maintain the price constant.

Conor Ryder, an analyst at digital asset research firm Kaiko, said earlier this week that Tether is poised to become a “net winner” of the stablecoin market reshuffle.

*Not investment advice.