Binance USD market capitalization tops $20 billion

The market capitalization of the Binance USD (BUSD) stablecoin surpassed the $20 billion mark.

The next chart illustrates the relative stability of the price of Binance’s centralised stablecoin.

Yet on several occasions the asset significantly deviated from parity with the dollar:

• amid a broad market rout on 10 May 2020, the price of BUSD fell to $0.938, but soon recovered;
• on 5 January 2021 the stablecoin’s market value fell to $0.98, then returned to the target level;
• on 28 February 2021 and 1 July 2022, the price of BUSD reached $1.01.

Binance USD ranks third in CoinGecko’s stablecoins by market capitalization, lagging significantly behind Tether (USDT) and USD Coin (USDC).

The total trading volume of BUSD is more than twice that of USDC, but about one third that of USDT.

Binance will start automatically converting the stablecoins USDC, USDP and TUSD on users’ balances into BUSD from 29 September.

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