New data from CryptoQuant, a chain-related analysis firm, shows that Binance USD (BUSD) has flowed $ 113 million in the Binance platform over the past week. This means that BUSD stablecoin now has the highest potential purchasing power of all other USD-based stablecoins, with the exception of USDT.
Binance’s new dollar-backed stable coin is based on ERC-20 and was launched in 2019 in collaboration with Paxos. Since then, the BUSD has steadily gained momentum, grown in size and recently surpassed the US dollar (USDC) on 4 September.
Binance wants a piece of DeFi cake
BUSD, with a market value of $ 363 million, is the third largest stable currency in the market. However, as Binance continues to expand its offerings, BUSD is likely to become a major player in stablecoin and the DeFi room, which has been largely dominated by USDT.
Binance has already shown great interest in playing a more important role in DeFi, and on 1 September the stock exchange launched its Binance smart chain.
The Binance chain lets the DeFi protocols run on top of it with lower fees than the Ethereum blockchain and BNB efforts that are also available through the platform.
On September 11, the famous DeFi Protocol, C.R.E.A.M. Announces that it will move to Binance Chain, and unlike most DeFi platforms, the protocol supports the growth of BNB, BUSD, BTC, ETH, XRP, BCH and LTC.
Binance also recently introduced the Launchpool platform, a new niche that allows users to manage assets such as BUSD. The first project on the platform is the Bella protocol, where users will be able to exchange BNB, BUSD and ARPA tokens.
Stable currencies show three-digit gains in 2020, but institutional rivals are threatening.
2020 was a year of explosive growth in stable currencies, mainly due to the explosive growth in decentralized finance and return protocols.
According to Coin Metrics, the market value of most USD-based stack coins has grown steadily at around $ 100 million per day for about two months, mainly driven by these liquidity pools.
This growth appears to be strongly dependent on the DeFi ecosystem, and although it continues to grow, stack coins still face some challenges in the future, with the central bank’s digital currencies (CBDC) being one of them.
It is also possible that financial institutions and large companies will compete with the current stable currency ecosystem if they develop their own digital currencies and blockchain networks.