FTX Chief executive officer Mike Bankman-Fried (SBF) stated an upswing of Binance stablecoin Binance USD (BUSD) could spark the “Second Great Stablecoin War,” given how quickly its market cap has surged over recent several weeks.
Bankman-Fried’s recent comments come per month after Binance pressed ahead with intends to auto-convert a number of stablecoins supported on its exchange into BUSD on Sept. 6, — which has witnessed BUSD’s share from the total stablecoin market rise since.
BUSD’s share from the total stablecoin market has risen from 10.01% on Sept. 7 to fifteen.48% on March. 22, based on crypto data aggregator Gold coin Metrics.
Meanwhile, BUSD’s market cap has risen 3.3% during the last thirty days to $21.7 billion, using the stablecoin only trailing Tether USD (USDT) at $68.4 billion and USD Gold coin (USDC) at $43.9 billion.
Commenting around the asset’s growth following a move, the FTX Chief executive officer noted via Twitter on March. 23 that “Binance converts USDC –> BUSD, so we begin to see the alternation in supplies,” adding “thus begins the 2nd great stablecoin war.”
Bankman-Fried noted the first “Stablecoin War” was fought against between five stablecoins in 2018, resulting in USDT and USDC because the two leaders.
Today, USDT still holds a substantial lead having a 48% share from the stablecoin market, although it has fallen from 88% since 2020, while USDC is continuing to grow in share of the market from 10% to 32% within the same period.
Binance’s stablecoin rise is much more prominent, however, growing greater than 30x from .5% to fifteen.48% within the same time period.
Tether’s share from the stablecoin market has dropped from 88% to 48% since 2020.
USDC has tripled its share of the market from 10% to 32%
BUSD (Binance’s stablecoin) share of the market is continuing to grow by 30x from .5% to fifteenPercent pic.twitter.com/YpI89elHYU
— Will Clemente (@WClementeIII) October 18, 2022
SBF added that as BUSD is constantly on the edge its distance to the marketplace because the big centralized players fight for dominance, there will probably be more projects sprouting in the “non-fiat-backed-stablecoin space” also.
“It’ll be interesting to determine what emerges in the publish-Luna and publish-DAI-holding-USDC. My prediction is it is going to be something interest bearing or else with a few upside,” he added.
Related: BUSD: A situation study for stablecoin compliance and security
In September, Binance announced it might cease a lengthy listing of place buying and selling asset pairs for USDC, USDP Stablecoin (USDP) and TrueUSD (TUSD), with any users still holding the 3 stablecoins by Sept. 29 to obtain their holdings auto-transformed into BUSD in a 1:1 ratio.
Binance mentioned the move would be a decision to boost liquidity and capital efficiency for users. At that time, Binance stated there were immediate intends to perform the same to USDT, but noted this “may change.”
