Decreasing Supply of BUSD and Its Impact on the Cryptoeconomy
On February 20, according to statistics, 28.61 BUSDs have been withdrawn from the market in the past six days, that is, the supply has decreased by 17.77% duri…
On February 20, according to statistics, 28.61 BUSDs have been withdrawn from the market in the past six days, that is, the supply has decreased by 17.77% during this period. In the past 30 days, the supply of BUSD has decreased by 19.2%. When Paxos, the issuer of stable coins, announced that no new BUSD stable coins would be issued, the current BUSD was 16.1 billion US dollars. According to Nansen’s exchange portfolio tool, as of February 19, Coin An currently holds 10.9 billion BUSD. The indicators show that of the 67.71 billion US dollars of global transactions of cryptoeconomy on the same day, BUSD still accounts for 7.24 billion US dollars, accounting for 10.7% of the total.
Data: The supply of BUSD has decreased by about 18% in 6 days, and the market value of other stable currencies of Paxos has also decreased significantly
Interpretation of the news:
The recent statistics reveal that the BUSD supply has been decreasing for the past six days, resulting in a reduction of 17.77%. The decreasing supply trend is not limited to a week or so, however, over the past 30 days, the BUSD supply has decreased by 19.2%. The busier version of cryptocurrency, BUSD, created by Paxos, enables individuals to purchase and trade cryptocurrencies without facing the high volatility risks associated with traditional cryptocurrencies.
As per Paxos’ recent announcement, no new BUSD stable coins will be issued. The current BUSD sits at 16.1 billion US dollars. In extension, Coin An currently holds around 10.9 billion BUSD, as specified by Nansen’s exchange portfolio tool up to February 19.
As for the state of the cryptoeconomy, there was a global transaction of 67.71 billion US dollars on the same day, in which BUSD still accounted for 7.24 billion US dollars, comprising 10.7% of the total.
The decreasing BUSD supply has a profound impact on the cryptoeconomy. This indicates that BUSD stable coins are becoming increasingly rare, leading to their higher value in the digital market. The decreasing supply could also trigger a bullish run, leading to increased interest and investment in BUSD. This could further surge the value of BUSD and boost its demand.
The situation of reduced BUSD supply might also lead to loss of trust among investors and traders of the crypto market, leading to a decline in the overall value of cryptocurrencies. Therefore, although the decreasing supply of BUSD could lead to a bullish market and benefit traders and investors that hold onto BUSD, it is also crucial to maintain trust and transparency in the crypto market to foster long-term sustainability.
In conclusion, the BUSD supply has been decreasing for the past six days, and the fact that no additional BUSD stable coins will be issued is contributing to this decrease. BUSD still accounts for a significant proportion of global transactions, and a decreasing supply could lead to a bullish trend in the crypto market. However, the loss of trust in the crypto market might negatively impact the overall value of cryptocurrencies.
Overall, the BUSD supply dynamics must be monitored closely to understand the future direction of the cryptocurrency market, and the reliability issues in cryptocurrency must be addressed to ensure long-term adoption and growth.
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