The market cap of USDC has dropped by 5% as per CMC.
Anxiety sparked when Binance first announced the change earlier this month.
Binance starts conversion of TrueUSD, Pax Dollar, and USDC from Circle, to the exchange’s own stablecoin, Binance USD. It has already begun to have an impact on the stablecoin industry.
Since the world’s biggest cryptocurrency exchange, Binance, said it will no longer list competitor stablecoins on its platform. The number of USDC stablecoins leaving the market has increased by 93%. Meanwhile, the value of USDC on the market has dropped by 5%.
According to Nansen, a blockchain analytics company, as of Wednesday. Binance has $26 billion worth of stablecoins on its platform. Twenty billion dollars were held in BUSD, with the remaining amount spread among several rival stablecoins ($683 million in USDC, $48 million in USDP, and $283 million in TUSD).
Binance’s Market Dominance
According to Nansen, the only other significant stablecoin balance on Binance was $5 billion worth of Tether (USDT). Users may exchange their soon-to-be-delisted stablecoins for BUSD at a 1:1 rate beginning on Monday. The blog post stated that the exchange will automatically convert any leftover USDC, USDP, or TUSD holdings into its own stablecoin.
Even though Binance included three of its rivals in its announcement, USDC has received the lion’s share of the media coverage. Market capitalization-wise, it has continuously overtaken BUSD and is now the second biggest stablecoin. Moreover, anxiety was sparked when Binance first announced the change at the beginning of the month.
Because it has processed $23 billion in trades in the previous 24 hours, the cryptocurrency exchange easily dominates the market in terms of volume.