According to statistics, the stablecoin BUSD saw a significant drop in its supply over the past 30 days, shedding roughly 23.8% from Dec. 5, 2022, to Jan. 6, 2023. Since Dec. 13, 2022, BUSD’s supply has been reduced by more than $5 billion, going from $21.84 billion to its current level of $16.77 billion.
Stablecoin Market Sees Fluctuations With BUSD Losing Significant Supply, Ties to Turkish Lira
BUSD, the stablecoin founded by Paxos and
BUSD 30-day market capitalization statistics on Jan. 6, 2023.
The reduction in stablecoin supply coincides with a time of significant speculation surrounding the world’s largest cryptocurrency
BUSD/TRY data via Binance and coinmarketcap.com on Jan. 6, 2023.
Of the more than $5 billion in BUSD redemptions, BUSD’s supply shrank by 3.24 billion in three days from Dec. 13 to Dec. 16, 2022. Global trade volume was significantly higher at that time, as Dec. 13 statistics show that BUSD had around $9.38 billion in 24-hour volume compared to today’s $4.41 billion. BUSD’s top trading pair is tether (USDT), but statistics from cryptocompare.com indicate that BUSD has a strong relationship with the Turkish lira. As of Jan. 6, 2023, metrics show that the lira represents 2.45% of all BUSD trades.
Turkey has been experiencing a sovereign debt and currency crisis since 2018. In early 2022, Bitcoin.com reported on the growing popularity of stablecoins in Turkey, when the lira represented 7.20% of the $3.51 billion in 24-hour BUSD trades on Jan. 3. On Jan. 5, 2023, the Turkish lira accounted for $15,912,033 of Binance’s 24-hour trades. In addition to the lira, other top BUSD trading pairs on Binance include BTC,