Bitcoin ($BTC) Trading Into Binances Stablecoin $BUSD Rose Nearly 400% YTD: Report

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Bitcoin ($BTC) trading into Binances stablecoin BinanceUSD ($BUSD) has risen by 394% year-to-date after rising 0.44% in the month of August to 2.14 million bitcoin in trading volume, as the leading cryptocurrency exchanges stablecoin sees its importance laugh.

According to CryptoCompares August 2022 Exchange Review report, year-to-date BTC/BUSD trading volumes have risen a whopping 304% to a new all-time high, while USDC and TUSD have seen their trading volumes decline 11.4% and 63% respectively.

Bitcoin trading into Tethers USDT stablecoin rose 15.4% to 10.1 million BTC in August, as trading volatility returned to the markets. Per the firm, this is the highest volume recorded for BTC/USDT since June 2020, with USDTs market share of BTC trading into fiat or stablecoin rising to 66.4%.

The rise of BUSDs trading volume is relevant as earlier this month Binance hasannouncedit will start converting existing user balances and new deposits of USD Coin (USDC), Pax Dollar (USDP), and True USD (TUSD) into its own stablecoin Binance USD (BUSD) ).

The conversion is scheduled to begin on September 29 and essentially means Binance will stop supporting several major stablecoins, including the second-largest,USDC. Its issued by Circle Financial and has a market cap of nearly $51.8 billion, behind only Tethers $67.5 billion market cap when it comes to stablecoins.

The move, according to Binance, is intended to enhance liquidity and capital-efficiency for users. The exchange will also remove and stop trading on spot pairs involving USDC, USDP, and TUSD.

Analysts at JPMorgan have said that Binances move will benefit Tether, as it will increase the cryptocurrency importance in crypto trading. The investment bank noted that -Tethers market share of the stablecoin ecosystem has been declining over the past 18 months, which shows its importance has been dwindling. The company added:

In our opinion, Tethers importance is not only confined to its market cap share in the stablecoin universe but also depends on its usage, in particular in trading.

CryptoCompares report also points out that last month derivatives trading volumes across all centralized exchanges rose 1.91% to $3.16 trillion, registering their first rise in three months. Spot volumes rose 36.8% to $1.91 trillion, recording the second-largest month by volume in the year.

According to the report, the derivatives market has dominated crypto trading volumes historically. Its loss of market share reflects the uncertain macroeconomic conditions with rising inflation rates and a looming threat of recession

Picture Credit

Featured Image via Pixabay

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