BUSD Market Cap Falls Below $10B

The market supply of Binance USD (BUSD) has dropped below $10 billion for the first time since June 2021.

On Friday, the capitalization of the digital asset was around $9.5 billion, but it fell to $9.172 billion by Sunday. Despite this, BUSD is still ranked third in the stablecoin rankings after Tether (USDT) and USD Coin (USDC).

This rapid decline was a result of Paxos’ decision to cease issuing the token, following an order from the New York Department of Financial Services (NYDFS), as well as reports that the Securities and Exchange Commission (SEC) was planning to sue the issuer for issuing unregistered securities.

According to Nansen, about $6.7 billion was withdrawn from Binance USD in the middle of last month. Coinbase CEO Brian Armstrong has also decided to stop trading the stablecoin due to his fear that its capitalization would decrease in the near future.