Long-term investors have found hope with the introduction of stablecoins such as BUSD to cryptocurrency. Stablecoins are a great way to sail for people who have doubts about crypto due to the volatility.
The stablecoins have a name that refers to their ability to hold the value of stablecoins in real time. Some are also pegged to cash and tangible assets that help them stay stable.
However, the crumbling of TerraUSD UST, an algorithmic stablecoin and its native token LUNA created a large hole in the market for stablecoins. Many investors were able to see the new paradigm of what stablecoin means. Many crypto assets suffered massive losses as well as investors.
People have been warming up to stablecoins recently, thankfully. The Binance USD (BUSD), the world’s third largest stablecoin, is significantly impacting the crypto space. The trading volume of the BUSD increased by 70% over Tuesday. The largest 24-hour trading volume ever recorded is BUSD.
Binance Announcement Causes BUSD Trading Volume
Many people have been interested in the sudden rise in BUSD trade volume. They are trying to find the cause. Binance made an announcement recently that the reason for this spike in trading volume for BUSD is clear.
Binance will offer BUSD Auto Conversion. The firm stated that the conversion would only be available for existing customers. TUSD stablecoins, USDC and USDP will all be used for the conversion.
Binance stated that the company would use a 1:1 ratio for conversion. The conversion will begin on September 29, 2022. The new initiative is intended to improve liquidity and capital efficiency. It will allow customers to trade easily with their BUSD balances consolidated on the platform.
Binance Announcement – USDC
Binance stated that its conversion process wouldn’t affect withdraws made on their platform. The exchange won’t be able to perform other USDC functions, such as spot and leverage.
BUSD’s trading volume has increased by 70% over the 24 hours since the announcement. BUSD’s trading volume reached $8.4Billion at press time, with an estimated market capital of $19.4B. The USDC trading volume grew by 20% in the past 24 hours, reaching $7.06 billion.
Binance announced that it was going to attack USDC in an attempt to expand both its utility and reach. USDC, the market leader in stablecoins, has a market value of approximately $51.8 million. USDC is aiming to surpass USDT and become the most popular stablecoin.
USDC was praised for its best support after the destruction of Terra.
Featured image by Pexels. Chart from TradingView.com