A stablecoin's rise in market share has ignited the ‘Second Great Stablecoin War’
FTX CEO Sam Bankman-Fried (SBF) said the rise of Binance stablecoin BUSD could spark the “Second Great Stablecoin War,” given how fast its market cap has surged over recent months.
Bankman-Fried's recent comments come a month after Binance pushed ahead with plans to auto-convert a host of stablecoins supported on its exchange into BUSD on Sept. 6, — which has seen BUSD's share of the total stablecoin market rise since.
BUSD’s share of the total stablecoin market has risen from 10.01% on Sept. 7 to 15.48% on Oct. 22, according to crypto data aggregator Coin Metrics.
Meanwhile, BUSD’s market cap has risen 3.3% over the last 30 days to $21.7 billion, with the stablecoin only trailing Tether USD (USDT) at $68.4 billion and USD Coin (USDC) at $43.9 billion.
Commenting on the asset’s growth following the move, the FTX CEO noted via Twitter on Oct. 23 that “Binance converts USDC --> BUSD, and we see the change in supplies,” adding “thus begins the second great stablecoin war.”
Bankman-Fried noted that the first "Stablecoin War" was fought between five stablecoins in 2018, leading to USDT and USDC as the two leaders.
Today, USDT still holds a considerable lead with a 48% share of the stablecoin market, though it has fallen from 88% since 2020, while USDC has grown in market share from 10% to 32% in the same period.
Binance's stablecoin's rise is even more prominent, however, growing more than 30x from 0.5% to 15.48% in the same time frame.
Tether's share of the stablecoin market has dropped from 88% to 48% since 2020. USDC has tripled its market share from 10% to 32%BUSD (Binance's stablecoin) market share has grown by 30x from 0.5% to 15% pic.twitter.com/YpI89elHYU
SBF added that as BUSD continues to edge its way into the market
Read more on cointelegraph.com
