Binance is hard at work promoting its BUSD stablecoin, thereby undermining the leadership position of the Tether coin. The volume of transactions with BUSD on the exchange increased by a third.
Based on data, provided by The Block Data Dashboard, trading in BUSD pairs rose to 36% in early autumn. In October, up to 35%. And in 2021, it reached only 17%.
BUSD - the main stablecoin on the BNB chain and is pegged to the US dollar.
Right now, BUSD has a special strength in the trading environment due to the promotion of Binance. But Tether (USDT) trading is still leading the way across all exchanges. Its share in trading decreased to 58% in September, while BUSD, on the contrary, increased to 24%.
Trading stablecoins is becoming more and more common. As of 2018, bitcoin pair trading figures corresponded to 35 percent of the volume on exchanges. Today, this figure is only 3%. Ethereum trading is less than 1%.
The increase in BUSD trading is most likely due to the fact that BUSD trading pairs can be traded for free on Binance. This could encourage traders to trade against him. Especially after the decision of Binance to convert the assets of all clients in stablecoins for USDC, USDP and TUSD — to BUSD.
Roughly 74% of trading volume takes place on Binance, so it's no surprise that the exchange's decision to favor a stablecoin had a strong impact.
The large demand for BUSD trading is proportional to the increase in its supply. The supply of USDC and USDT for this year has decreased, while the supply of BUSD, on the contrary, is increasing. From the beginning of the year to October, this figure increased to $21.4 billion. At the same time, taking only 3rd place, having 1/2 USDC stablecoin supply and 1/3 USDT stablecoin supply.
