Dogecoin Flips Binance USD: DOGE Reclaims Top 10 Spot with 50% Market Cap Drop
• Dogecoin (DOGE) surpasses Binance USD (BUSD) in the TOP 10 global market cap.
• SEC restricts Paxos, the issuer of BUSD, from producing any more stablecoins.
• BUSD market cap dropped dramatically, while USDT and USDC also declined.
Dogecoin Flips Binance USD Stablecoin: BUSD Loses 50% of its Market Cap
Binance has been under scrutiny recently due to competitor Circle’s reports to the Securities and Exchange Commission (SEC). The reports cited mismanagement of the Paxos-issued stablecoin Binance USD (BUSD). This resulted in over $3 billion worth of BUSD being moved away from the platform in 6 days. In addition, back in September, Binance delisted USD Coin (USDC), converting all assets to BUSD – which later caused losses for Circle.
Dogecoin Surpasses BUSD
Despite a 2.2% slip by Dogecoin (DOGE), it was still able to reclaim its spot in the TOP 10 by global market cap – surpassing that of Binance USD. This happened just after one member warned Doge holders about switching to a DeFi solution instead of using BUSD. As a result, this was the first time DOGE overtook the CeFi platform’s stable coin since its inception.
SEC Restricts Minting New Stablecoins
The SEC officially forbade Paxos from producing any more BUSD stablecoins; thus cutting its market cap in half from November 2022 ($22,527 billion) to February 2023 ($11,424 billion). Additionally, both Tether (USDT) and USDC also saw declines as their respective market caps rose ($67,8 billion to $70,1 billion) and fell ($42,3 billion to $41,5 billion).
All these events have lead up to an unprecedented shift within cryptocurrency landscape with DOGE leading the charge against CeFi giants like Binance. However it remains too early to tell if this trend is here to stay or not; only time will tell what kind of impact this historic event will have on cryptocurrency as we know it today!
Dogecoin unexpectedly surpassed famous open-source memecoin – pushing aside giant CeFi platform’s own stable coin – amid SEC restrictions placed on PAXOS minting new coins and other shifts within cryptocurrency landscape such as fall and rise of USDC and USDT respectively.