Binance USD (BUSD) Becomes a Top 10 Crypto, Market Cap Exceeds $11B
3 Stablecoins Are Now in the Top 10
From the screenshot above, it can be observed that three stablecoins are currently in the top 10 rankings according to market capitalization. They include Tether (USDT), USD Coin (USDC) and Binance USD (BUSD).
Binance USD’s Market Cap Grew from $1B to $10B in Less than 6 Months
The entrance of Binance USD (BUSD) into the top 10 rankings was also captured by the team at Binance in a recent blog post that pointed out that its market cap grew from $30 million in early 2020, to $1 Billion by the end of the same year. Additionally, Binance USD’s market cap grew from $1 billion to $10 billion in less than six months in 2021.
The growth of Binance USD has been visualized in the following chart courtesy of the team at Binance.
Binance USD is Gradually Taking the Lead in DeFi
The popularity and growth of Binance USD has been due to several factors.
To begin with, the low transaction fees of the Binance Smart Chain make it the preferred stablecoin on the BSC ecosystem, particularly in DeFi.
Secondly, each BUSD is pegged to one US dollar at a ratio of 1:1. In addition, all USD reserves backing Binance USD are held in a 1:1 ratio in FDIC insured banks in the USA and can be redeemed at any time.
Thirdly, Binance USD was approved by the New York State Department of Financial Services (NYDFS) and is issued by Paxos. The stablecoin was also ‘Greenlisted’ by the same NYDFs making it a pre-approved asset for custody and trading by any of the virtual currency licensees issued by the NYDFS.
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