Binance stablecoin push eats into tether’s market share as BUSD volume surges

Quick Take

  • Binance’s trading volumes are becoming increasingly dominated by its related stablecoin BUSD, taking share from market leader tether.
  • This follows Binance’s recent move to convert some of its users’s stablecoins into BUSD.

Binance's push to promote its BUSD stablecoin is eating into the dominance of market leader tether, with trades against BUSD climbing to a third of all volume on the exchange. 

Trading of BUSD pairs rose to 36% in September and sits at 35% so far this month, according to The Block's Data Dashboard. A year ago, this figure was just 17%. 

BUSD is the main stablecoin on the BNB Chain, a set of two blockchains associated with Binance. It's pegged to the price of the U.S. dollar, unlike the chain's native token BNB, which is free floating.

Thanks to Binance's promotion, the stablecoin now represents a significant force in the trading landscape. While trading in tether (USDT) is still dominant across all exchanges, its share of trading fell to 58% in September while BUSD's climbed to 24%.

At the same time, trading against stablecoins has continued to become more common. While in 2018, trading with bitcoin pairs made up as much as 35% of volume across exchanges, it now represents less than 3%. Similarly, trading against ether makes up less than 1% of such volume.

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