1. PixelPlaygroundHome
  2. Metaverse Insights

BUSD’s Circulation Supply Declines to 9.5 Billion USD as Redemptions Rise

• Metaverse Insights • 157 views

According to the report, the data showed that as of the time of press release, the circulation supply of the stable currency Binance USD (BUSD) issued by Paxos…

BUSDs Circulation Supply Declines to 9.5 Billion USD as Redemptions Rise

According to the report, the data showed that as of the time of press release, the circulation supply of the stable currency Binance USD (BUSD) issued by Paxos was about 9.5 billion US dollars, a new low since June 2021. In addition, according to Nansen, a cryptographic intelligence company, investors have redeemed about $6.7 billion of BUSD from Paxos since February 13 this year.

Data: Since February 13, investors have redeemed about $6.7 billion of BUSD from Paxos

Interpretation of the news:


Binance USD (BUSD) is a stablecoin issued by Paxos, which has become increasingly popular in the cryptocurrency market. In a recent report, it was mentioned that BUSD’s circulation supply had declined to approximately 9.5 billion US dollars, which is a new low since June 2021. Additionally, the report pointed out that investors have redeemed around $6.7 billion of BUSD from Paxos since February 13, indicating a rising trend of redemptions.

BUSD is considered a stablecoin as it is pegged to the US dollar on a one-to-one ratio. This means that for every BUSD issued, it is backed by an equivalent US dollar held in reserve by Paxos. The stability of BUSD makes it an attractive option for investors who wish to shield themselves from cryptocurrency price volatility. In recent times, BUSD has gained popularity in the crypto market, as it provides a reliable alternative to traditional currencies, especially for international transactions.

The decline in BUSD’s circulation supply can be attributed to several factors. One possibility is that investors are moving their funds to other types of stablecoins that offer better yields or lower transaction fees. Moreover, some crypto enthusiasts view stablecoins as a less attractive investment option since they offer low returns compared to other digital assets, such as Bitcoin or Ethereum. The redemption of BUSD is another factor affecting the decrease in its circulation, indicating that investors are looking to switch to cash or other liquid assets.

The rise in redemptions is an important aspect that reveals much about the state of the cryptocurrency market. The redemption of BUSD could indicate that investors are hesitant to hold onto stablecoins and are looking for a more secure option. This could also indicate that they are responding to negative market sentiments or fears of an economic downturn. The redemption of stablecoins could also be due to regulatory concerns or government crackdowns on cryptocurrency trading.

In conclusion, the decline in BUSD’s circulation supply must be observed in the broader context of the crypto market. While this could raise concerns for some, it is important to note that stablecoins are a relatively new asset class that is still developing. Therefore, fluctuations in circulation supply and redemptions are likely to be commonplace in the coming months or even years. Nonetheless, it is crucial for investors to monitor these trends and make informed decisions based on market data.

This article and pictures are from the Internet and do not represent Fpips's position. If you infringe, please contact us to delete:https://www.fpips.com/4915/

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.

Like (0)
Previous 03/04/2023 19:38
Next 03/04/2023 20:31

Recommended articles