Bitcoin ($BTC) Traded Into Binance’s Stablecoin $BUSD Up Almost 400% YTD: Report

by James · September 20, 2022

Bitcoin ($BTC) traded into Binance’s stablecoin BinanceUSD ($BUSD) is up 394% year-to-date after rising 0.44% in the month of August to 2.14 million bitcoin in trading volume, as the leading cryptocurrency exchange’s stablecoin sees the importance. ladder.

According to CryptoCompare’s August 2022 Exchange Review report, year-to-date BTC/BUSD trading volumes have risen a whopping 304% to a new all-time high, while USDC and TUSD have seen their trading volumes drop by 11.4% and 63% respectively.

Bitcoin trading for Tether’s USDT stablecoin surged 15.4% to 10.1 million BTC in August as “trading volatility returned to markets.” Per the firm, this is the highest volume recorded for BTC/USDT since June 2020, with USDT’s market share of fiat or stablecoin BTC trading rising to 66.4%.

The increase in BUSD’s trading volume is relevant since Binance announced earlier this month that it will begin converting existing user balances and new deposits of USD Coin (USDC), Pax Dollar (USDP) and True USD (TUSD) into its own stablecoin Binance USD (BUSD ).

The conversion is scheduled to begin on September 29 and essentially means that Binance will stop supporting several major stablecoins, including the second largest, USDC. Issued by Circle Financial, it has a market cap of nearly $51.8 billion, behind only Tether’s $67.5 billion market cap when it comes to stablecoins.

The move, according to Binance, is intended to “improve liquidity and capital efficiency for users.” The exchange will also remove and stop trading on spot pairs involving USDC, USDP and TUSD.

Analysts at JPMorgan have said that Binance’s move will benefit Tether as it will increase the cryptocurrency’s importance in crypto trading. The investment bank noted that -Tether’s market share of the stablecoin ecosystem has been declining over the past 18 months, showing that its importance has diminished. The company added:

In our opinion, Tether’s importance is not only limited to its market share in the stablecoin universe, but also depends on its use, especially in trading.

CryptoCompare’s report also points out that derivatives trading volume on all centralized exchanges last month rose 1.91% to $3.16 trillion, registering their first increase in three months. Spot volumes rose 36.8% to $1.91 trillion, recording the second biggest month by volume of the year.

According to the report, the derivatives market has historically dominated crypto trading volumes. The loss of market share “reflects the uncertain macroeconomic conditions with rising inflation rates and a looming threat of recession”