After Paxos announced that it would no longer mint the BUSD stablecoin, 4.98 billion BUSD stablecoins have been withdrawn from circulation to date. The Paxos-run stablecoin also fell out of the top ten crypto assets by market cap, falling below the valuation of dogecoin with a market cap of around $11.12 billion, down from $11.24 billion.
BUSD Refund: Nearly $5 Billion in Stablecoins Withdrawn from Circulation in 12 Days
Since Paxos announced on February 13, 2023 that it would no longer issue the dollar-pegged BUSD crypto asset, almost $5 billion worth of BUSD stablecoins have been redeemed. At the time of the announcement, there were around 16.1 billion BUSD coins in circulation, but around 11,129,348,406 BUSD are in circulation today. Over the past 12 days and the redemption of 4.98 billion BUSD, the dollar-pegged crypto asset has remained at par with the US dollar.
On February 25, 2023, Binance's reserve wallet showed that the crypto exchange held $9.01 billion in BUSD. Globally, BUSD saw around $6.84 billion in trading volume in 24 hours, with Binance being the most active BUSD exchange, according to statistics from coincko.com. The majority of BUSD trades were associated with the stablecoin (USDT) strap, while the Turkish lira still accounted for 2.80% of all BUSD trades on Saturday.
Currently, out of the $1.1 trillion crypto economy, BUSD accounts for 1,007% of value added. This dominance has waned significantly over the past 12 days, and BUSD was officially removed from the top ten cryptocurrency positions this weekend. At the time of writing, BUSD is the 11th largest market valuation of thousands of existing crypto assets, with a market capitalization lower than dogecoin (DOGE) and higher than lido stake ether (STETH).