Sunday, November 27, 2022
HomeAltcoinsCircle co-founder applauds Binance decision of merging stable coin with USDC

Circle co-founder applauds Binance decision of merging stable coin with USDC

According to a recent post on Twitter, Jeremy Allaire, co-founder and CEO of USD Coin (USDC) stablecoin issuer Circle, stated that the recent decision by Binance to merge stablecoin dollar books is “a good thing” for USDC. Allaire made this statement in reference to Binance’s decision to merge stablecoin dollar books. Allaire predicted that the change will result in a steady movement in net share away from USDT and toward BUSD and USDC.

The day prior, Binance made the announcement that it will stop providing trading support for USDC and that it would automatically convert deposits made after September 29 into a consolidated Binance USD balance made up of various stablecoins linked to the US dollar. Individual components may be withdrawn from the aggregated balance by users at their face value, and this functionality will be available to them.

A number of users have brought to our attention that it is now able to make frictionless deposits and withdrawals of USDC on Binance. Before the rule was altered, it was necessary to convert USDC to BUSD or USDT before using it to trade leveraged products. This requirement no longer applies. Because of this, there would be a rise in the total liquidity of USDC.

Others, on the other hand, pointed out that the automated conversion may result in a higher redemption of USDC, which would then lead to the minting of additional BUSD. According to Nansen, the total amount of USDC owned by Binance has dropped to less than 1 billion since July, when it was 2.5 billion. In the meanwhile, the exchange has a holding of around 5 billion USDT.

According to information provided by Dune Analytics, USDC is presently the second-most popular stablecoin in the world and is responsible for 33.5% of all transactions within the category. Since the two years previous, it has been steadily increasing its market share. Tether (USDT), which uses the United States Dollar as its base currency, is now the most popular stablecoin, with a market share of 50.3%. Binance USD is now in third position with 15.1% of the market share.

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Jeewan Singh is CryptoShrypto’s content writer and a seasoned writer with over two years of experience in writing about Indian Securities Market. Jeewan's participation in Blockchain and Cryptocurrency started in late 2020, and he hasn't looked back since. The technical and economic outcomes of cryptocurrency are what spark his curiosity, and he keeps one eye on the market.


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