A stablecoin's rise in market share has ignited the ‘Second Great Stablecoin War’
FTX CEO Sam Bankman-Fried (SBF) stated the rise of Binance stablecoin BUSD may spark the “Second Nice Stablecoin Struggle,” given how briskly its market cap has surged over latest months.
Bankman-Fried’s latest feedback come a month after Binance pushed forward with plans to auto-convert a number of stablecoins supported on its trade into BUSD on Sept. 6, — which has seen BUSD’s share of the full stablecoin market rise since.
BUSD’s share of the full stablecoin market has risen from 10.01% on Sept. 7 to fifteen.48% on Oct. 22, in accordance with crypto information aggregator Coin Metrics.
In the meantime, BUSD’s market cap has risen 3.3% during the last 30 days to $21.7 billion, with the stablecoin solely trailing Tether USD (USDT) at $68.4 billion and USD Coin (USDC) at $43.9 billion.
Commenting on the asset’s progress following the transfer, the FTX CEO noted through Twitter on Oct. 23 that “Binance converts USDC –> BUSD, and we see the change in provides,” including “thus begins the second nice stablecoin warfare.”
Bankman-Fried famous that the primary “Stablecoin Struggle” was fought between 5 stablecoins in 2018, resulting in USDT and USDC as the 2 leaders.
At the moment, USDT nonetheless holds a substantial lead with a 48% share of the stablecoin market, although it has fallen from 88% since 2020, whereas USDC has grown in market share from 10% to 32% in the identical interval.
Binance’s stablecoin’s rise is much more outstanding, nonetheless, rising greater than 30x from 0.5% to fifteen.48% in the identical timeframe.
Tether’s share of the stablecoin market has dropped from 88% to 48% since 2020.
USDC has tripled its market share from 10% to 32%
BUSD (Binance’s stablecoin) market share has grown by 30x from 0.5% to fifteen% pic.twitter.com/YpI89elHYU
— Will Clemente (@WClementeIII) October 18, 2022
SBF added that as BUSD continues to edge its approach into the market as the large centralized gamers struggle for dominance, there’ll doubtless be extra tasks sprouting up within the “non-fiat-backed-stablecoin house” additionally.
“It’s going to be attention-grabbing to see what emerges from the post-Luna and post-DAI-holding-USDC. My guess is that it will likely be one thing curiosity bearing or in any other case with some upside,” he added.
Associated: BUSD: A case examine for stablecoin compliance and safety
In September, Binance introduced it could stop an extended checklist of spot buying and selling asset pairs for USDC, USDP Stablecoin (USDP) and TrueUSD (TUSD), with any customers nonetheless holding the three stablecoins by Sept. 29 to have their holdings auto-converted to BUSD at a 1:1 ratio.
Binance stated that the transfer was a call to reinforce liquidity and capital effectivity for customers. On the time, Binance stated there have been rapid plans to do the identical to USDT, however famous that this “might change.”
