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Binance BUSD Trading Volume Surges By 70%, What Is The Reason?

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Binance BUSD Trading Volume Surges By 70%, What Is The Reason?

The introduction of stablecoins, like BUSD into cryptocurrency brought hope to many long-term investors. For those skeptical of the crypto space due to volatility, stablecoins become handy as their sailing means.

As the name goes, stablecoins are meant to remain stable to the real-time value of the fiat currencies they are pegged to. Also, some come pegged to tangible assets and cash that facilitate their stability.

But the collapse of the algorithmic stablecoin, TerraUSD UST, and its native token, LUNA, created a big hollow for stablecoins. It shifted the paradigm for lots of investors on what stablecoin stands for. The event brought massive losses to many investors and other crypto assets.

Thankfully, people have started warming up to stablecoins again lately. The Binance USD (BUSD), the world’s third largest stablecoin, is significantly impacting the crypto space. BUSD recorded a massive increase of about 70% on Tuesday in its trading volume. It remains the most considerable 24-hour trading volume recorded in recent times.

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Binance Announcement Triggered BUSD Trading Volume

The sudden spike in trading volume for BUSD has raised lots of interest as people are looking for the potential trigger. The reason is not far-fetched, as Binance recently made a big public announcement.

Crypto total market cap trends downwards on the daily chart | Source: TradingView.com

Binance is laying out BUSD Auto conversion. At the moment, the firm mentioned that it would be for the existing balances of customers on the platform. The conversion process will be on USDC, TUSD, and USDP stablecoins.

Binance reported that it would be using a fixed ratio of 1:1 for the conversion. This process is to kick off by September 29, 2022. It noted that the new move is to increase liquidity and capital efficiency for its users. This will enable customers to trade conveniently with their consolidated BUSD balances on the platform.

Effect Of Binance Announcement About USDC

Further, in its statement, Binance mentioned that the conversion process would not affect withdrawals on its platform. However, the exchange will stop other USDC-related functions like leverage, spot, and payment.

Hence, BUSD witnessed a whopping rise of 70% in trading volume over the last 24 hours following the announcement. At the time of press, BUSD trading volume hit $8.4 billion with a market cap of over $19.4 billion. Similarly, the USDC trading volume increased by 20% over the last 24 hours to $7.06 billion.

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To increase both the coverage and utility of BUSD, the Binance announcement came as a massive attack on USDC. As the second largest stablecoin, USDC boasts a market cap of about $51.8 billion. It is striving even to overtake USDT as the leading stablecoin.

After the fall of the Terra ecosystem, USDC has received lots of applause for having the best backing.

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Bancorp

Circle Launches Cross-Chain Transfer Protocol, USDC Issuer Acquires Payment Orchestration Firm Elements

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Circle Launches Cross-Chain Transfer Protocol, USDC Issuer Acquires Payment Orchestration Firm Elements

On Thursday, at the Converge22 event in San Francisco, Circle announced the acquisition of the payment orchestration company Elements. Circle explained that the acquisition includes plans to “quickly scale payment offerings.” Circle says the new service will make it easier for merchants to integrate their existing points of contact with Circle’s crypto solutions.

Circle Reveals New Permissionless Cross-Chain Transfer Protocol at Converge22

This week Circle and a number of other crypto industry heavyweights attended the Converge22 event in San Francisco. During the conference, Circle has made a number of announcements like usd coin (USDC) support being added to Robinhood Markets’ offerings. In addition to partnering with Robinhood, Circle also announced the firm’s new “cross-chain transfer protocol to support USDC interoperability for developers [and] their users.”

“Cross-Chain Transfer Protocol is permissionless and enables USDC to be sent natively across ecosystems, improving liquidity and reducing fragmentation of bridged assets,” Circle’s official Twitter account said on Wednesday. “Developers building wallets, bridges, payments apps, financial services tools [and] more will be able to deliver simple, cross-chain USDC transactions – simplifying the user experience and maximizing capital efficiency,” Circle added.

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At the Converge22 event in San Francisco, Circle also announced that USDC will soon be available on Arbitrum, Cosmos, Near Protocol, Optimism, and Polkadot. Images courtesy of Circle’s Twitter account shared September 28.

USDC Issuer Acquires Payment Services Firm Elements

The following day, Circle announced it has acquired the payment services firm Elements. Circle detailed that the acquisition “includes plans to quickly scale payment offerings to unlock utility value for crypto and lower the barrier of entry for merchants to access next-gen payments and financial services.” Nikhil Chandhok, the chief product officer at Circle said that the company was “very impressed by the Elements team.”

The crypto asset company and stablecoin issuer Circle further stated:

The new payment offerings make it simple for merchants to integrate their existing PSP relationships with Circle’s crypto payment offerings.

The news follows the market capitalization of the stablecoin usd coin (USDC) deflating by $6.7 billion in 83 days. Furthermore, both Binance and Wazirx recently auto-converted their customer’s USDC holdings into the stablecoin asset BUSD. In June, Circle revealed USDC Polygon support and it launched a stablecoin asset backed 1:1 with the euro on June 16. The company also partnered with New York Community Bancorp and revealed the holding company would custody USDC reserves.

“Elements’ mission is to put more money into the hands of merchants,” Nafis Jamal, the founder and CEO at Elements said during the announcement on September 29. “With Circle, we knew the natural synergy in our business models would create an opportunity to deliver a seamless and low cost payments and settlement experience for merchants using a digital currency they can trust.”

Tags in this story

Bancorp, Binance, BUSD, capital efficiency, chief product officer, Circle, Circle Financial, Conference, Converge22, Cross-Chain Transfer Protocol, euro coin (EUROC), Nafis Jamal, Nikhil Chandhok, payment orchestration company, Polygon, Robinhood, San Francisco, usd coin, usd coin (USDC), USDC, Wazirx

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What do you think about Circle acquiring the payments services firm Elements? Let us know what you think about this subject in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits: Shutterstock, Pixabay, Wiki Commons, Images via Circle’s Twitter account.

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Bitcoin Notches Highest Trading Volume In Over 3 Months, Binance Data Shows

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Bitcoin Notches Highest Trading Volume In Over 3 Months, Binance Data Shows

Bitcoin (BTC) trading volume is on the rise, as the cryptocurrency market shows some signs of improvement.

As of this writing, BTC is trading at $19,326, up 3.2 percent in the last 24 hours, data from Coingecko show, Thursday.

Today is one of the busiest trading days for Bitcoin since mid-June. CryptoQuant attributes the recent surge in BTC trading volume to Binance.

CoinGecko also reveals a dramatic increase in Bitcoin trade volume over the past three days. Total trade volume for the coin is $142.5 billion, a massive rise from $81.6 billion, or a 42.5% gain.

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However, recent charts reveal that the market is still prone to volatility, especially when it comes to the BTC/BUSD pair.

Despite this possibility, Binance’s recent measures could aid Bitcoin and the broader cryptocurrency market in recovering from the recent massive liquidations.

Bitcoin Whales In Aggressive Mode

Binance made the decision to remove trading fees for a number of Bitcoin pairs on July 7. Included in this are trading pairs involving Bitcoin and their native stablecoin, the Bitcoin Dollar (BUSD).

As a result, the amount of daily trades in BTC/BUSD spiked almost immediately. The current price of the pair is $19,369. There has been an increase in value due to BTC being purchased by “whales” using BUSD.

Futures contracts on BTC/BUSD have likewise followed this pattern. As of today, the total number of BTC/BUSD transactions has reached 8.9 million. But does this whale frenzy portend future success for Bitcoin? Quite possibly.

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Chart: TradingView.com

Potential Breakout? Or A Dip In The Offing?

The unexpected spike in Bitcoin transactions and trade volume is remarkable. This simple fluctuation can prompt traders to initiate profitable positions. At this time, Bitcoin long holdings are realistic.

However, the likelihood of a breakout is still quite remote. Currently, the Stoch RSI and CCI numbers are on the rise, which can provide sell signals to day traders seeking a rapid profit.

However, the tapering end of a descending triangle formation can make it difficult for bulls to break.

Currently, the pair is hovering at the 78.60 Fibonacci level, with immediate resistance at the $19,792 price range. With support at $18,137.58, a continuation of the rise is feasible if the bulls maintain their strength.

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BTCUSD pair showing signs of vigor, trading at $19,417 on the daily chart | Source: TradingView.com    Featured image from The Market Periodical, Chart: TradingView.com

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$6.7 billion

Stablecoin Economy Continues To Deflate — USDC’s Market Cap Shed $6.7 Billion In 83 Days

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Stablecoin Economy Continues To Deflate — USDC’s Market Cap Shed $6.7 Billion In 83 Days

Just over two months or approximately 83 days ago, the stablecoin usd coin (USDC) had a market valuation of around $55.52 billion and since then, USDC’s market capitalization has lost 12.05%. For most of 2022, the second largest stablecoin by market capitalization, USDC has been above the $50 billion mark, but this week the crypto asset’s market valuation is around $​​48.82 billion.

Following Tether’s Recent Stablecoin Reduction, USDC’s Market Cap Drops 12%

In mid-June, Bitcoin.com News reported on the largest stablecoin asset tether (USDT), as USDT’s saw more than $12 billion erased from the market cap in two months and at that same time, usd coin’s (USDC) market cap rose by 9%.

However, USDC’s market cap has shrunk a great deal during the last 83 days, as it has dropped by $6.7 billion since July 7, 2022. At the time of writing, at 4:15 p.m. (ET) on Wednesday afternoon, USDC’s market valuation is $48.82 billion and on July 7, it was much higher at roughly $55.52 billion.

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USDC market capitalization chart on September 28, 2022.

USDC’s market cap today is under the $50 billion zone but for most of 2022, the stablecoin’s market valuation remained above that region. On February 1, 2022, USDC captured the $50 billion mark, in terms of market capitalization, and it remained above that region until April 17.

After May 13, USDC once again reclaimed a market valuation above the $50 billion zone, and it remained that way for roughly 130 consecutive days. While USDC’s market valuation shrunk by 12.05% during the last 83 days, 6.6% of the loss was erased from the market cap during the past 30 days.

USDC’s market cap drop follows the company’s recent partnership with Robinhood Markets, but it also follows the recent auto-conversion moves by Binance and Wazirx. Both Binance and Wazirx auto-converted their customer’s USDC holdings (and other stablecoins) into BUSD if they did not withdraw the USDC by a specific date.

Today, on September 28, statistics indicate that USDC has roughly $4.31 billion in 24-hour global trade volume. The stablecoin’s market cap dominance represents 4.985% of the crypto economy’s $983 billion in fiat value. USDC’s top trading pair today is tether (USDT) as it accounts for 32.25% of today’s usd coin trades.

Tether is followed by EUR (27.16%), USD (22.56%), and GBP (6.51%) in terms of USDC’s top pairs on Wednesday. Stablecoins like tether (USDT) and usd coin (USDC) have seen a significant rise in euro and pound trading pairs since both fiat currencies started to slide against the greenback.

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$6.7 billion, Altcoins, Binance, Circle, Dollar Backed, Fiat, fiat currencies, Market Caps, Robinhood, Stablecoin, Stablecoin Caps Deflate, Stablecoin Economy, Stablecoin Market caps, Tether, usd coin, USDC, USDT, Wazirx

What do you think about USDC’s market valuation sliding by more than 12% during the past 83 days and 6.6% over the last 30 days? Let us know what you think about this subject in the comment section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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