Nansen: Over $6 billion of BUSD has been destroyed in the past 30 days
According to reports, Andrew T, an analyst at Nansen, said on the social platform that more than US $6 billion of BUSD has been destroyed in the past 30 days, which is equivalent to the top 20 cryptocurrency in market value. At present, there are still US $11 billion of BUSD in circulation, of which about US $9.7 billion is deposited in Binance.
Interpretation of this information:
The recent report reveals that the stable coin, BUSD, has lost over $6 billion in the past 30 days. This loss is equivalent to the total value of the top 20 cryptocurrencies in the market. The loss is due to the massive withdrawal of BUSD from cryptocurrency exchanges such as Binance. Currently, BUSD has approximately $11 billion in circulation, which 90% of it is deposited in Binance.
Stable coins like BUSD are designed to provide stability to the highly volatile cryptocurrency market by maintaining a fixed exchange rate to a stable asset such as the US dollar. BUSD, one of the highly popular stablecoins, has been aggressively purchased by the investors in recent months, leading to a sudden surge in the BUSD supply in the market. However, the recent market turmoil has resulted in a significant decline in the demand for BUSD, leading to the loss of over $6 billion in value.
Although there is still $11 billion worth of BUSD circulation, the vast majority of it is locked up in Binance. This indicates that Binance is the primary recipient of BUSD investment, and it has also been a significant contributor to the decline in BUSD demand. Binance is known as one of the largest cryptocurrency exchanges, which has experienced a significant decline in the trading of cryptocurrencies in recent weeks.
The loss of $6 billion in the past 30 days is a clear indication of the highly volatile cryptocurrency market. It demonstrates that stable coins are no exception and face significant risks associated with the cryptocurrency market. With the increasing size and influence of the cryptocurrency market, it is essential to implement measures to mitigate the risk of significant losses in the future.
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