BUSD, one of the stablecoins of the Web3 environment, is showing a decline in its market capitalization. However, many crypto enthusiasts use BUSD as a considerable alternative to giants like USDT and USDC.
BUSD was in the news recently due to several Web3 events. The constant war with US regulatory rules and the Paxos, the arrest of Binance CEO, and the diminishing support for the coin from Binance, all affected BUSD.
A major concern among the investors is whether to convert their USD to BUSD or not. What will happen to BUSD in the future? In this in-depth article, we will try to figure it out.
We will look into BUSD’s historical data, current Web3 trends, and market sentiments, and try to predict the future of BUSD. Also, we will check the trustworthiness, provide a buying guide, and delve into other important details.
Let’s begin.
What is BUSD?
BUSD, the Binance USD, is a stablecoin built on the BEP-2 and ERC-20. Binance has partnered with the New York-based financial institution Paxos Trust Company to issue BUSD.
The BUSD providers should ensure that BUSD has a 1:1 peg to the US Dollar. That means for each BUSD they mint, there should be an equivalent US Dollar in the Paxos reserve.
As of July 2024, the circulating supply of BUSD is around 69 million, which means the market cap is around 69 million dollars. Among the USD stablecoins, BUSD is now in 17th position.
Here are some details about BUSD:
| Token Ticker | $BUSD |
| Blockchain | BNB Beacon Chain (BEP2) |
| BNB Chain Contract Address | BUSD-BD1 |
| Ethereum ERC-20 Contract Address | 0x4Fabb145d64652a948d72533023f6E7A623C7C53 |
| Today’s Market Cap | $69,505,776 |
Use Cases of BUSD
The use case of BUSD is the same as other Stablecoins. It is a medium of exchange, a Web3 equivalent to US Dollars. It is also a store of value and a trading asset.
BUSD is mainly used in the Binance smart chain and exchange platform. In the Binance exchange, there are discounts on transaction fees for those who use BUSD instead of USDT.
BUSD Market Capitalisation; Historical Data
In 2019, Binance required a US firm to release its USD stablecoin. Eventually, they partnered with Paxos and got approval from the New York State Department of Financial Services.
The partnership released BUSD on September 5, 2019, through BEP-2 and ERC-20 chains. The BUSD ecosystem gradually entered the mainstream Web3 and saw growth in 2021 with the market cap reaching 1 Billion dollars. In the same year, huge funds started flowing into BUSD, touching a market cap of 14 billion.
In November 2022, BUSD reached an all-time high of 22 billion market capitalization. But, after two years, the coin is now in a downward trend. Many internal and external factors affected its downtrend.
Controversies Regarding BUSD
Controversies always surround the stablecoin ecosystem. Stablecoins are in constant battle with Government-based regulatory systems around the world. BUSD also became part of some controversies.
A recent controversy was the arrest of Binance CEO (former) Changpeng Zhao for money laundering. He was sentenced to four months in prison, which made him resign from the CEO post.
BUSD in 2024 Bull Market
When it comes to stablecoins, the 2024 Bull Market’s major player is Tether (USDT). BUSD may see a gradual increase in its market cap after people forget the current controversies surrounding Binance and Paxos.
Also, many senior crypto experts predict that altcoin season is on the way. We may see crypto enthusiasts, especially from the East delving into BUSD.
The Future of BUSD; 2025 to 2030
BUSD’s future remains uncertain. From 2025 to 2030, we won’t see any reason for BUSD to rise in its market cap. They should come up with some nuanced narratives to attract new investors.
We cannot predict the fate of stablecoins. However, here are some major factors that will determine the future of the BUSD:
- The Regulations by Governments: The US Elections are near, and if Kamala Harris wins, we will see more regulations of stablecoins that will affect BUSD. Anyway, we see right-wing governments rising around the globe that will help the blockchain environment.
- Demand and Use Cases: Binance and Paxos should come up with new ways of storytelling to attract new investors. Also, they should expand the usage of BUSD around Web3 platforms.
- Competition in the Market: Regarding the stablecoins, BUSD is now in 17th position. There is huge competition in the market and if it shows linear growth, it will come to the top around 2030.
- Partnerships and Technological Advancements: BUSD is like a lonely traveler who doesn’t like co-existing. It should increase its partnership with ventures. It should engage in more fundraising activities. Nuanced technological advancements should arrive in the transaction, staking, and other activities.
Trustworthiness of BUSD
The anonymity is less severe with stablecoins. They have regular auditing, and other rules & regulations. If you trust all other stablecoins, you can trust BUSD too.
However, it is important to do your own research instead of delving into conclusions through reviews by others. Read more about BUSD to get a better understanding.
Top Stablecoins in the Market
Prominent Stablecoins are ruling the crypto market and BUSD has to climb up so hard to compete with them. As we said, BUSD is in the 17th position. Here are the top 3 stablecoins according to market cap:
- USDT: Tether ($USDT) is the top most stablecoin based on market cap. Today’s capitalization is around 84 Billion. Tether is owned by iFinex, a Hong Kong-based company.
- USDC: USDC, co-founded by Coinbase Exchange and the financial technology company Circle, is in the second position. The market cap is 34 Billion dollars.
- DAI: DAI, maintained by the decentralized autonomous organization MakerDAO, is in the 3rd position with a market cap of 5.4 Billion dollars.
Final Thoughts on BUSD
BUSD’s future depends on its capability to build trustworthiness and nuanced narratives. This is a problematic phase for the coin, and we are skeptical about a revival of the token.
But despite that, the BUSD is regularly used by many Web3 traders for its adaptability in the Binance ecosystem. If you are using USDT regularly, it is time to delve into BUSD for a change. Then you will get a clearer picture of the stablecoin.
Finally, always invest in crypto with caution. Be vigilante, and DYOR!
Read more: Arkham (ARKM) Price Prediction 2024 – 2030, Where To Buy, Is It A Good Investment?
