Stablecoins enjoy the privilege of being one of the most traded types of cryptocurrencies by the virtue of their application. For a long time in recent past, a few major stablecoins enjoyed the pole position in the category. But the Binance BUSD auto conversion has certainly brought about a sea change in stablecoin scene. The auto conversion announcement itself came as a shocker to a section of the crypto community.
On September 6, top crypto exchange Binance said it was introducing the auto conversion for existing balances on the platform. It said existing balances of users on the platform would be auto converted. Also, it said all new deposits of USDC, USDP and TUSD stablecoins would be converted. Meanwhile, Binance exchange token BUSD might not be the only cryptocurrency that is benefitting from the auto conversion.
Tether To Benefit From Binance BUSD Auto Conversion?
Experts believe that Tether (USDT) could also benefit from the Binance BUSD auto conversion. This is due to BUSD’s lack of availability across crypto exchanges. In comparison with BUSD, Tether is quite widespread in terms of availability. According to a Bloomberg report, the stablecoin scene was disrupted thanks to the Binance auto conversion. The reports quoted Clara Medalie, head of research at Kaiko as saying Tether is still in a very strong position. Medalie made the comment in context of Tether’s slow growth figures.
“Tether is still in a very strong position in the market. Not every exchange lists BUSD and most traders will probably have accounts on multiple exchanges, so they are going to favor a stablecoin that’s the easiest to work with.”
USDC’s Fall
On the other side, USDC’s market cap fell by around 7% since last month. From the level of $51.70 billion last month, the stablecoin’s market size currently stands at $46 billion. BUSD market cap has increased to $21.60 billion currently from $20 billion last month.
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