Traders turn to USDT as BUSD dominates heavily imbalanced Curve liquidity pool Traders turn to USDT as BUSD dominates heavily imbalanced Curve liquidity pool
The BUSD V2 dashboard shows that the embattled stablecoin accounted for roughly 81% of the pool's $12.85 million reserve, while USDT made up 4%.
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Updated: Feb. 14, 2023 at 8:01 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Curve pool’s Binance USD (BUSD) V2 pool is heavily imbalanced, with crypto traders showing preferences for Tether’s USDT.
The BUSD V2 dashboard shows that the embattled stablecoin accounted for roughly 81% of the pool’s $12.85 million reserve, while USDT made up 4%. The other stablecoins in the pool — USD Coin (USDC) and DAI — make up the balance.
Crypto analytical tool Chaineye said BUSD’s dominance surged from 68.3% to 79.1% on Feb. 13 following the regulatory action against the stablecoin issuer Paxos. A research analyst at 21 Shares, Tom Wan, added that BUSD liquidity decreased by $3 million.
Meanwhile, a look at 3Pool’s dashboard — the largest liquidity pool on Curve — shows that crypto investors favor USDT over other stablecoin options. According to the dashboard, USDT accounted for 21.47% of the reserve, USDC accounted for 38.39%, and DAI made up 40.12% as of press time.
Some analysts have expressed concerns that the recent regulatory action might affect USDC’s issuer Circle. However, Matrixport head of research Markus Thielen told CryptoSlate he does not think the regulators are targeting stablecoins directly.
Curve’s trading volume spikes
Meanwhile, Curve’s trading volume spiked by 900% to over $1 billion amid the growing stablecoin war, according to DeFillama data.
This is one of the protocol’s highest trading volumes — behind what it recorded during the height of the FTX’s implosion in Nov. 2022.
Curv Finance has also entered the stablecoin scene with its overcollateralized crvUSD dollar-pegged digital asset. The DeFi protocol released the whitepaper for the asset last year, and the community is anticipating its issuance.
Curve’s CRV token grew by roughly 14% in the last 24 hours to as high as $1.09 before retracing to its current levels of $1.07 as of press time, according to CryptoSlate data.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
Curve DAO (Decentralized Autonomous Organization) is a decentralized platform built on the Ethereum blockchain that aims to provide a stable and efficient market for trading stablecoins.
Tether
$0.99844
Launched in 2014, Tether is a blockchain-enabled platform designed to facilitate the use of fiat currencies in a digital manner.
USD Coin
$0.99995
USD Coin (USDC) is a stablecoin fully backed by the US dollar and developed by the CENTRE consortium.
Binance USD
$1.00091
BUSD is a stablecoin issued by Paxos in partnership with Binance..
Dai
$0.99976
Dai (DAI) is a cryptocurrency token and operates on the Ethereum platform.
Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
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.
