Circle CEO says Binance decision to stop USDC support is good as it increases utility News ▸ US ▸ Binance ▸ USDC ▸ Stablecoins
Circle CEO says Binance decision to stop USDC support is good as it increases utility
Wintermute CEO Evgeny Gaevoy says Tether risks losing ground if it does not improve operational efficiency.
2 min read
Updated: Jun. 23, 2023 at 10:43 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Circle CEO Jeremy Allaire said Binance’s decision to convert its users’ USD Coin (USDC) holdings to its Binance USD (BUSD)stablecoin is good.
Helpful perspective from @wintermute_t , which is spot on. Converged dollar books on Binance — now same as on FTX and Coinbase — is a good thing. USDC utility just increased. https://t.co/QWfMx7f1cZ
— Jeremy Allaire (@jerallaire) September 5, 2022
According to Allaire, the move would further increase USDC’s utility and “lead to a gradual net share shift from USDT to BUSD and USDC.”
Allaire continued that FTX and Coinbase already use the Converged dollar books, so, Binance following suit is a welcome development.
Wintermute CEO supports Binance’s move
Crypto market maker Wintermute’s CEO Evgeny Gaevoy also supported Binance’s decision.
1) Removing most stablecoin pairs is a good thing – liquidity doesn’t have to be split between multiple stablecoins, making market makers’ job easier and markets overall more liquid
— wishful cynic (@EvgenyGaevoy) September 5, 2022
According to Gaevoy, removing most stablecoin pairs helps to make the market more liquid and market makers’ jobs easier. He said the move would also benefit the stablecoin because depositing and withdrawing them via the platform would become more accessible.
Tether’s dominance faces a challenge
Meanwhile, Gaevoy pointed out that the move challenges Tether’s (USDT) dominance of the space.
Ultimately until tether improves their operational efficiency (minting/burning is a T+1 process, unlike almost instant in case of USDC/BUSD/TUSD) and mint/redeem cost, it will continue losing ground.
— wishful cynic (@EvgenyGaevoy) September 5, 2022
Gaevoy said users would “keep wondering what makes tether so “special” that they need to bother with conversion,” which would increase the liquidity of non-USDT pairs in the long run.
Gaevoy continued that USDT would have to improve its operational efficiency and mint/redeem cost or keep losing ground to US native stablecoins.
BUSD trading volume spikes by over 60% in 24 hours
BUSD trading volume increased by 65% over the last 24 hours to $8.4 billion, according to CryptoSlate data. BUSD is the third-largest stablecoin with a market cap of $19.4 billion.
Similarly, USDC’s trading volume rose by 25% to $7.2 billion. USDC is the second-largest stablecoin by market cap, with $52 billion.
Meanwhile, Tether’s trading volume also spiked by 40% during the same period to $49 billion. USDT is the largest stablecoin in the space, with a market cap of $67.5 billion.
Overall, $65.5 billion stablecoins were traded over the last 24 hours, and Tether’s USDT accounted for over 80% of these trades.
Mentioned in this article
Author 
Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
Latest US Stories
Latest USDC Stories
Featured Story
Advertise Here
In this article
USD Coin (USDC) is a stablecoin fully backed by the US dollar and developed by the CENTRE consortium.
Binance USD
$1.00112
BUSD is a stablecoin issued by Paxos in partnership with Binance..
Tether
$0.99999
Launched in 2014, Tether is a blockchain-enabled platform designed to facilitate the use of fiat currencies in a digital manner.
Coinbase
Coinbase is a digital currency exchange and wallet service that allows individuals to buy, sell, and store digital currencies, such as Bitcoin, Ethereum, and Litecoin.
FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.
Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
Circle
Circle Internet Financial Ltd is a global internet finance company, built on blockchain technology and powered by crypto assets.
Jeremy Allaire stands as the founder, chairman, and CEO of Circle, a trailblazing consumer Internet company.
Changpeng Zhao, popularly known as “CZ,” is a notable figure in the cryptocurrency world, primarily for founding and leading Binance, the world’s leading cryptocurrency exchange by trading volume.
