Circle CEO says Binance decision to stop USDC support is good as it increases utility
Circle CEO Jeremy Allaire said Binance’s decision to convert users’ USD Coin (USDC) holdings into the Binance USD (BUSD) stablecoin was a good one.
useful perspective from @wintermut_t , this is the spot. Dollar book convergence on Binance — now the same as FTX and Coinbase — is a good thing. USDC utility just increased. https://t.co/QWfMx7f1cZ
— Jeremy Allaire (@jerallaire) September 5, 2022
According to Allaire, the move will further increase the utility of USDC and “lead to a gradual shift in net share from USDT to BUSD and USDC.”
Allaire went on to say that FTX and Coinbase are already using converged dollar books, so it would be a welcome development for Binance to follow suit.
Wintermute CEO Supports Binance Move
Evgeny Gaevoy, CEO of cryptocurrency market maker Wintermute, also supported Binance’s decision.
1) Removing most stablecoin pairs is a good thing. Not having to split liquidity among multiple stablecoins makes the job of market makers easier and increases overall market liquidity.
— Hopeful Cynic (@EvgenyGaevoy) September 5, 2022
According to Gaevoy, removing most stablecoin pairs will help increase market liquidity and make the job of market makers easier. He said the move will also benefit stablecoins as deposits and withdrawals through the platform will become more accessible.
Tether’s Domination Faces a Challenge
Gaevoy, on the other hand, pointed out that the move is challenging Tether’s (USDT) dominance of space.
Ultimately, it will continue to lose ground until Tether improves operational efficiency (unlike USDC/BUSD/TUSD, minting/burning is a T+1 process) and minting/redemption costs improve. .
— Hopeful Cynic (@EvgenyGaevoy) September 5, 2022
Gaevoy said users “would be wondering why Tether is so ‘special’ and why should we care about conversions?” said it would be
Gaevoy continued that USDT must continue to lose out to US-specific stablecoins unless it improves operational efficiency and mint/exchange costs.
BUSD trading volume surges by over 60% in 24 hours
According to CryptoSlate data, BUSD’s trading volume increased by 65% in the last 24 hours to $8.4 billion. BUSD is the third largest stablecoin with a market capitalization of $19.4 billion.
Similarly, USDC trading volume increased 25% to $7.2 billion. USDC is his second largest stablecoin with a market capitalization of $52 billion.
Meanwhile, Tether’s trading volume also surged by 40% over the same period to $49 billion. USDT is the largest stablecoin in this space with a market cap of $67.5 billion.
Overall, $65.5 billion in stablecoins were traded in the last 24 hours, with Tether’s USDT accounting for over 80% of these trades.
