In a strategic move, the world’s leading crypto exchange, Binance, has announced its decision to cease all support for its native stablecoin, Binance USD (BUSD), starting February 2024. This move has far-reaching implications, including the delisting of BUSD trading pairs, notably those involving Shiba Inu (SHIB) and XRP tokens.
Binance is actively encouraging its users to smoothly transition their BUSD holdings into alternative stablecoins available on the platform.
Of particular interest is the SHIB to BUSD trading pair, which currently ranks as the fourth most voluminous pair across all platforms featuring the Shiba Inu token. Remarkably, this pairing boasts a trading volume of approximately $1.66 million at present.
Similarly, for XRP, the XRP/BUSD pair secures a prominent position as the sixth largest in terms of volume. On Binance alone, this pairing commands a trading volume of $7.67 million, constituting roughly 1% of the token’s overall trading volume.
Cats and mice
The exchange’s decision to delist and curtail trading options for BUSD is somewhat of a response to the U.S. Securities and Exchange Commission’s allegations, labeling the stablecoin as a security. Both the issuer of BUSD, Paxos, and Binance itself responded swiftly to these allegations, halting further minting and circulation.
This strategic pivot has prompted a redirection toward exploring new opportunities on the market. Consequently, BUSD, once a dominant force in the digital asset market, now holds the 23rd position with a capitalization of $3 billion — a stark contrast to its previous top five ranking just a few months ago.