FTX CEO Sam Bankman-Fried (SBF) mentioned the rise of Binance stablecoin BUSD may spark the “Second Nice Stablecoin Conflict,” given how briskly its market cap has surged over current months.
Bankman-Fried’s current feedback come a month after Binance pushed forward with plans to auto-convert a bunch of stablecoins supported on its alternate 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 knowledge 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 conflict.”
Bankman-Fried famous that the primary “Stablecoin Conflict” was fought between 5 stablecoins in 2018, resulting in USDT and USDC as the 2 leaders.
Right this 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 distinguished, nonetheless, rising greater than 30x from 0.5% to fifteen.48% in the identical time-frame.
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 probably be extra initiatives sprouting up within the “non-fiat-backed-stablecoin house” additionally.
“It’s going to be fascinating to see what emerges from the post-Luna and post-DAI-holding-USDC. My guess is that it is going to be one thing curiosity bearing or in any other case with some upside,” he added.
Associated: BUSD: A case study for stablecoin compliance and security
In September, Binance introduced it will stop a protracted 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 choice to reinforce liquidity and capital effectivity for customers. On the time, Binance mentioned there have been quick plans to do the identical to USDT, however famous that this “could change.”
