Against the background of the automatic conversion of a number of stablecoins to BUSD, the market share among all stablecoins of the BUSD token increased from 10.01% to 15.48%. FTX CEO announced in an interview about the possible launch of the company's own stablecoin.
Since September 29, Binance began to automatically convert some stablecoins, namely USDC, USDP, TUSD into its own BUSD stablecoin. Despite the fact that, in general, this news was received positively by the community and the companies that own stablecoins, there were also those who said that all this was going to be beneficial primarily for the exchange itself, and BUSD can capture the market.
As we wrote earlier, the first signals that this decision affected convertible stablecoins appeared in early October, then it became known that the market capitalization of BUSD increased by 10% over the month, and the market capitalization of other stablecoins decreased.
At the time of writing, according to CoinMarketCap, the market capitalization of BUSD is $21,388,562,384, and the daily trading volume has reached $5,722,335,316.
The editor-in-chief of The Block, Frank Chaparro, shared his observations on Twitter and noted the rapid development of the BUSD stablecoin. Chaparro noted that BUSD's offer exceeded $20 billion for the first time since the launch of the stablecoin, and also drew attention to BUSD's record share of the total stablecoin market -15.48%.
BUSD supply is on a tear, topping $20 billion this month for the first time ever
— Frank Chaparro (@fintechfrank) October 22, 2022
BUSD supply as a share of the overall stablecoin market is at an all time high of 15.48%
So far this month, the % of trades denominated in BUSD stands at 22% pic.twitter.com/k2fNHDhvrE
Of course, these observations were not ignored. Sam Bankman-Fried, CEO of the FTX exchange, marked the sharp rise of BUSD as the beginning of the Second Great Stablecoin War.
1) Binance converts USDC --> BUSD, and we see the change in supplies.
— SBF (@SBF_FTX) October 23, 2022
Thus begins the Second Great Stablecoin War. (The first one, fought in ~2018, ended with USDC and USDT edging out TUSD/GUSD/USDP.) https://t.co/X2VLOBOTev
Interestingly, a few days later, The Big Whale had an interview with the CEO of FTX, in which he said that the company was working on creating its own stable coin. However, a few days after the interview was released, Sam tweeted that the company did not fully understand what to do with stablecoin and that "it could be anything or nothing”.
Eh to clarify: we are figuring out what we're doing on stablecoins; it could be anything or nothing, and could *or could not* involve partnerships, issuance, hula hoops, etc. (One of those is less likely than the others.)
— SBF (@SBF_FTX) October 28, 2022
I wonder if FTX's stablecoin will be launched and if Sam Bankman-Fried plans to compete with other companies during the Second Great Stablecoin War? Will BUSD be able to snatch the lead from USDT and USDC? We will continue to observe these and other events in the world of stable coins and will definitely tell you all the most interesting developments.
