A scheduled delisting from a major cryptocurrency exchange and a regulatory crackdown on the token issuer in the United States have caused the market cap of Binance USD (BUSD) to drop below $10 billion for the first time in over two years. After reaching an all-time high (ATH) market value of $23.49 billion on Nov. 15, only a few days after the shocking collapse of FTX, BUSD’s market cap has been on a sharp downward trend.
The stablecoin’s market capitalization as of right now is $9.66 billion, levels last reached on June 29, 2021.
The United States Securities Exchange Commission (SEC) may sue Paxos in connection with BUSD due to a suspected breach of investor protection regulations on February 12. Since then SEC, BUSD’s market capitalization has decreased by $6.65 billion.
On February 12, Paxos was also given a directive by the New York Department of Financial Services (NYDFS) to cease minting and issuing BUSD, which is likely what caused the stablecoin’s market value to decline.
BUSD will be removed from Coinbase’s exchange on March 13 because the stablecoin “no longer matched our listing requirements,” a Coinbase official informed Cointelegraph earlier this week. With many citing the current issue surrounding Silvergate Bank and the delayed release of its annual 10-K financial report on Feb. 1, the overall cryptocurrency market has also suffered a decline in market value.
The Binance-branded stablecoin, which debuted in September 2019, swiftly grew to become the third-largest stablecoin behind Tether (USDT) and USD Coin (USDC).According to market cap, the stablecoin is presently ranked 10th among all cryptocurrencies. Solana (SOL), the next cryptocurrency on the list, with a market valuation of $7.98 billion.
Intriguingly, Binance CEO Changpeng ‘CZ’ Zhao said in a Twitter Post on February 14 that he never had big expectations for the Binance stablecoin project and had even predicted that it “may fail” when it initially launched. While the cryptocurrency exchange seeks to diversify its stablecoin holdings, Binance recently issued approximately $50 million worth of TrueUSD (TUSD) to make up for the decline in demand for BUSD.
