- According to Nansen journalist Martin Lee, Binance has been investing more of the USD Coin, up to $1.5 billion for a week
- Ever since Paxos stopped minting for Binance, BUSD’s trading volume has severely decreased
- On September 2022, Binance delisted USDC from its exchange and all the money there automatically converted into BUSD
Crypto exchange Binance has been in a series of problems ever since Paxos, a crypto brokerage, officially stopped minting the local stablecoin BUSD. According to a recent discovery from Martin Lee, a journalist from Nansen, USD Coins (USDC) have increased in volume since February 20. He tweeted the chart for proof that Binance was stacking up on the USDC, which was speculated as a method to combat the dwindling market capitalization of BUSD.
“Interesting to see the USDC on Binance increase so much since the BUSD news (over 1.5B increase in the L7D),” he tweeted. “Expected the amount of USDT to increase much more than USDC given that you can’t trade using USDC.”
Binance may be the top exchange regarding Bitcoin activity, but the stablecoin trading volumes show a different story. According to Lee, the USDT – the most active stablecoin for trades – is stored the most on the Tron exchange. He said that over 50% of the global volume goes to that website.
Meanwhile, USDC is a stablecoin issued by Circle. It was officially delisted on Binance on September 2022. All trading pairs that involved USDC automatically converted to BUSD. However, with the recent issues, Binance might relist USDC if the worst-case scenario happens when BUSD gets depegged.
Binance as the Reigning Crypto Exchange
Binance is widely recognized as one of the world’s leading cryptocurrency exchanges. The exchange’s innovative services, vast trading options, and user-friendly interface have made it the go-to choice for many crypto users looking to buy and sell digital assets.
The company has succeeded by providing access to most countries besides the UK, Italy, Germany, Japan, Singapore, and Malaysia. Binance consistently adds new coins and tokens to its platform, enabling investors to diversify their portfolios according to risk tolerance levels. It also provides impressive liquidity by allowing users to trade against flat and margin wallets, making accessing liquidity easier.
What sets Binance apart from other exchanges is its commitment to providing a secure and stable trading environment for its customers. The platform employs cutting-edge security protocols, including multi-factor authentication, hardware encryption keys, and distributed ledger technology. All these measures help protect users from cyberattacks and malicious actors.
In addition, Binance offers competitive fees for trading on its platform compared to other market exchanges. Its native token (BNB) allows traders who hold it to save up to 50% on trading fees which help make Binance highly attractive even among sophisticated investors seeking cost savings when executing trades or hedging strategies.
Binance also does its best with speed and responsiveness; deposits are credited almost instantly after being sent in, while most transactions for buying or selling cryptocurrencies occur within minutes. Peer-to-peer transactions also help buyers and sellers to transact with the lowest fees possible. Additionally, anyone trading with Bitcoin will pay no fees.
Despite all the controversies and suspicions, Binance remains a powerhouse in trading volume and user population.
