According to a different Twitter publish, Jeremy Allaire, co-founder and Chief executive officer of USD Gold coin (USDC) stablecoin issuer Circle, stated the recent decision by Binance to merge stablecoin dollar books is “a great factor” for USDC. “This move would result in a gradual internet share shift from USDT to BUSD and USDC,” stated Allaire.
Yesterday, Binance announced it might cease buying and selling support for USDC and auto-convert deposits after Sept. 29 to some consolidated Binance USD balance comprising other stablecoins pegged towards the U.S. dollar. Users can withdraw individual constituents in the consolidated balance at componen value.
Quite a few users pointed out that now you can deposit and withdraw USDC seamlessly in Binance. Prior to the change, it had been needed to first convert USDC to BUSD or USDT after which utilize it to trade leveraged products. Therefore, the general liquidity of USDC would increase.
However, others noticed that the automated conversion may potentially lead to greater redemption of USDC to mint more BUSD. Based on Nansen, USDC held by Binance has decreased to under 1 billion from 2.5 billion in This summer. Meanwhile, the exchange holds around 5 billion USDT.
Data from Dune Analytics claim that USDC is presently the 2nd-most widely used stablecoin on the planet, comprising 33.5% of transactions within the category. It’s been gaining in share of the market since 2 yrs prior. Tether (USDT) is presently probably the most broadly-used stablecoin, having a share of the market of fifty.3%. Meanwhile, Binance USD sits in third place with 15.1%.
