BUSD market capitalization is the lowest it has been since June 29th, 2021.
Binance USD (BUSD) market cap has fallen by almost $14 billion.
The fiat-backed stablecoin reached its all-time high market cap of $23.49 billion on November 15th, a few days after the shocking FTX collapse.
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More than four months after its all-time high market capitalization, Binance USD (BUSD) market cap fell below $10 billion. The decrease in market capitalization comes days after United States regulators imposed several regulatory actions against stablecoins, and Coinbase announced that it will be suspending BUSD trading.
At the time of writing, the BUSD market cap is around $9.7 billion. It is the lowest it has been since June 29th, 2021.
On February 12th, the news broke that the United States Securities and Exchange Commission (SEC) issued a Wells Notice to Paxos over its BUSD stablecoin. The US securities regulator claimed that Paxos violated securities laws as BUSD is unregistered security. Since then, $6.65 billion has been wiped off the stablecoin’s market cap.
On top of that, the New York District of Financial Services (NYDFS) ordered Paxos to stop issuing BUSD and cut its ties with Binance.
Shortly after that, an American cryptocurrency exchange Coinbase announced it is set to suspend trading for BUSD starting March 13th. A Coinbase spokesman revealed that the move comes after the company determined that “BUSD does not meet <Coinbase> listing standards anymore.”
After its launch in 2019, BUSD quickly became the third-largest stablecoin. The first and the second positions are held by Tether (USDT) and USD Coin (USDC). BUSD is the 10th cryptocurrency with the highest market cap in the industry. Solana follows as number 11 with a market cap of $7.98 billion.
