Binance USD [BUSD] maintains its peg even as outflow increases
The regulatory hammer hung above Binance for some time before landing on Binance USD (BUSD). Despite the FUD that has gripped the stablecoin, one metric has turned out to be positive for it thus far.
Due to the Wells notice issued by the Security and Exchange Commission (SEC) to Paxos, the Binance USD (BUSD) has been put through a rigorous stress test.
Consequently, stablecoin investors have been forced to sell their holdings. It was estimated that as of 17 February, there had been close to $500 million worth of trades visible to the public.
Despite the high volume of transactions, BUSD has kept its value fixed at one dollar, as per Crypto Quant. As of this writing, the volume had already exceeded 200 million while remaining stable at its current level. Despite the asset’s apparent fall, this is good news.
Source: CryptoQuant
All signs point to BUSD holders being in a hurry to sell their assets because they are unsure of what might happen next.
Analyzing the inflow and outflow statistics for all exchanges revealed that although the inflow had reduced, the outflow was still at a significant level.
The most recent figures indicated that the outflow was nearly 500 million. Holders may be switching to fiat or other stablecoins, as seen by the rising outflow.
Source: CryptoQuant
Furthermore, Binance’s BUSD reserve has been diminishing with the enormous volume of BUSD trading.
A check of Binance’s exchange reserve measure revealed that the reserve had dropped to roughly $12.48 billion as of this writing. It started the year with a reserve of nearly $14 billion and kept it until the decline began.
Source: CryptoQuant
It’s important to note that a proposal to discontinue trading in BUSD on Aave was presented on 13 February
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