The market capitalization of BUSD has decreased drastically since its all-time peak of $23.49 billion on November 15, 2022 and is now close to $14 billion lower.


Binance USD's market value has dropped below $10 billion, which is the first time in almost two years. This decline is attributed to heightened regulatory scrutiny by the US federal government over its cryptocurrency activities, as well as its potential removal from a well-established digital currency exchange.


Since hitting its highest market capitalization of $23.49 billion on November 15th, shortly after the fall of FTX, BUSD's market capitalization has plummeted significantly.


The market capitalization of the stablecoin has dropped to $9.66 billion as of March 3, which is a level that hasn't been observed since June 29, 2021.


The US Securities and Exchange Commission has filed a lawsuit against Paxos on Feb. 12 concerning a potential infringement on investor protection regulations, involving BUSD in the proceedings. This legal action has resulted in a decrease of BUSD’s market cap of $6.65 billion.


The New York District of Financial Services issued an order for Paxos to cease minting and issuing BUSD on Feb. 12, and this could be what is behind the shrinking of the stablecoin's market capitalization.


Coinbase has revealed that they will be removing BUSD from their platform on March 13th due to it "no longer fulfilling the requirements of their listing criteria," as mentioned in a statement given by a spokesperson.


The overall crypto market has had a drop in its market capitalization, with some attributing this to the recent turmoil concerning Silvergate Bank and their delayed filing of the annual 10-K financial report on the first of March.


After being unveiled in September 2019, the Binance stablecoin experienced impressive growth, and soon positioned as the third-most popular stablecoin, following Tether and USD Coin.


Currently, the stablecoin is the 10th largest cryptocurrency in terms of market cap, with Solana just behind in 11th place at $7.98 billion.


At a Feb. 14 Twitter Spaces event, Binance CEO Changpeng “CZ" Zhao revealed that he was originally doubtful of the Binance stablecoin project and thought it “may fail” when it was first released.


Binance responded to the decline in the need for BUSD by introducing roughly $50 million worth of TrueUSD (TUSD), so as to expand its stablecoin portfolio.



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