Circle co-founder says converged dollar books on Binance would be good for USDC
According to a brand new Twitter put up, Jeremy Allaire, co-founder and CEO of USD Coin (USDC) stablecoin issuer Circle, stated that the latest choice by Binance to merge stablecoin greenback books is “a great factor” for USDC. “This transfer would result in a gradual internet share shift from USDT to BUSD and USDC,” stated Allaire.
The day earlier than, Binance introduced it might stop buying and selling help for USDC and auto-convert deposits after Sept. 29 to a consolidated Binance USD steadiness comprising different stablecoins pegged to the U.S. greenback. Customers will be capable to withdraw particular person constituents from the consolidated steadiness at par worth.
Some customers pointed out that it is now attainable to deposit and withdraw USDC seamlessly in Binance. Earlier than the change, it was required to first convert USDC to BUSD or USDT after which use it to commerce leveraged merchandise. Subsequently, the general liquidity of USDC would enhance.
Nonetheless, others identified that the automated conversion may doubtlessly end in larger redemption of USDC to mint extra BUSD. In keeping with Nansen, USDC held by Binance has decreased to lower than 1 billion from 2.5 billion in July. In the meantime, the alternate holds round 5 billion USDT.
Knowledge from Dune Analytics counsel that USDC is at present the second-most standard stablecoin on this planet, accounting for 33.5% of transactions within the class. It has been gaining in market share since two years prior. Tether (USDT) is at present essentially the most widely-used stablecoin, with a market share of fifty.3%. In the meantime, Binance USD sits in third place with 15.1%.
