The market capitalization of BUSD has dropped from USD 18.57 billion to USD 17.61 billion, a drop of about 5%, in about one month. The transparency of the USD Coin has created a great wave of adoption that has helped its market capitalization reach new all-time highs.
Stablecoins usually have parity with a real-world asset like a fiat currency, a commodity, or a financial instrument. They aim to serve as an alternative to volatile cryptocurrencies such as Bitcoin (BTC) and Ether (TH).
After the price crash in the overall crypto market, stablecoins seem to be the only winners. For example, Binance USD (BUSD) has climbed into the top ten leading coins by market capitalization.
BUSD is trading at USD 1 and has accumulated a 0,6% loss over the last week. While its daily trading volume is above USD 4.99 billion, its market capitalization is about USD 17.22 billion. It occupies 6th place in the cryptocurrency ranking above Cardano (ADA), Ripple (XRP), and Solana (SOL), according to CoinGecko.
Many traders and investors liquidating their positions amid this bearish tide keep their capital in stablecoins. That has recently allowed those coins to climb in the top ten with a barely affected market capitalization.
The Market Capitalization of BUSD Has Held Up
The market capitalization of Binance USD (BUSD) has fallen slightly but does not compare to the decline in the overall crypto ecosystem. It has gone from USD 18.57 billion on May 20th to USD 17.61 billion, a drop of about 5%.
Besides investors searching for temporary shelter, that coin has benefited from the collapse of the stablecoin Terra (LUNA) and the mistrust of Tether (USDT).
USDT, the largest stablecoin by market capitalization, has not emerged very victorious from the market crash. Tether has suffered from many negative rumors like the alleged tie-in with Celsius and news that Chinese paper backed 85% of its paper trading portfolio.
Tether has gone from having a capitalization of USD 83.21 billion in early May to around USD 67.44 billion. That has represented a drop of about 18.95% in one and a half months.
The Winning Stablecoin in the Crypto market Is USDC
The transparency of the stablecoin USD Coin has created a great wave of adoption of that coin. This situation happens when trust is the most valuable within the crypto ecosystem.
USDC is trading at around USD 1 and has accumulated a 0.3% loss over the last week. While its daily trading volume is above USD 5.08 billion, its market capitalization is about USD 55.82 billion. It occupies 4th place in the cryptocurrency ranking above USDT, according to CoinGecko.
All the other participants in the crypto market suffered losses during the market crash. However, even the market capitalization of that stablecoin has grown, reaching new all-time highs day after day.
In the short-to-medium term, there might be a new leading stablecoin in the crypto market. It is only a matter of seeing how the market behaves before affirming USDC or BUSD will dethrone USDT.
By Alexander Salazar
