- Dogecoin reclaims its spot in the TOP 10 by global market cap.
- The popular open-source memecoin surpassed Binance USD.
- DOGE slipped by 2.2% despite the unusual achievement.
The world’s leading crypto platform Binance has been in the hot seat this month. Close competitors Circle informed the Securities and Exchange Commission (SEC) about Binance’s mismanagement of the Paxos-issued stablecoin Binance USD (BUSD).
With over $3 billion of BUSD moved away in 6 days, the leading canine coin DOGE made the most out of the fuss and surpassed the market share of the leading CeFi platform’s stablecoin – for the first time. Interestingly, this happened ten days after a Dogecoin Foundation member warned all Dogecoin (DOGE) holders about BUSD and advised them to switch to a DeFi solution.
Indeed, it can be argued that BUSD was the centerpiece of Binance’s ecosystem. The stablecoin is pegged to the United States Dollar and served as the default cryptocurrency in Binance’s user interface for a while. On top of that, Binance delisted USD Coin (USDC) in September, automatically converting all of the assets to BUSD.
Two months later, Circle publicly admitted that quarterly losses and miscalculations in the balance were directly attributable to Binance delisting USDC. As if that wasn’t enough, USDC and BUSD had a similarly sized global market capitalization before the SEC officially forbade the stablecoin issuer Paxos from producing any more BUSD.
Crypto History in the Making: DOGE Overthrows Binance USD
While the recent BUSD stablecoin mess could be seen as an act of vengeance from Circle, most of the issues surrounding Binance USD are unrelated to the fierce competitors. The SEC is triggering Paxos, the stablecoin issuer, rather than the crypto titan itself. However, the ban on minting new BUSD stablecoins cut Binance USD in half from November 2022.
At press time, Binance USD (BUSD) global market capitalization is $11,424 billion. In contrast, the crypto titan’s stablecoin had a market cap of $22,527 on November 27th, 2022. Split in half, the stablecoin is now topped by the leading dog-themed cryptocurrency Dogecoin (DOGE), which has a global market capitalization of $11,578 billion.
On the Flipside:
- Despite constant growth in community members, DOGE stayed in the $0.08 price range for the whole week and dropped 2.2% after topping BUSD.
- Currently, DOGE is at a key support level but repeatedly failed to retain the $0.10 crucial resistance line.
Why You Should Care:
Stablecoin performance and regulation are crucial for quicker crypto adoption, as many investors see stablecoins as a less volatile investment option than regular cryptocurrencies with fluctuating market prices.
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