Binance Stablecoin Supply Shrinking, Despite Maintaining Presence

IconCryptoNewsTerminal Staff31 Jul, 2024

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Binance Stablecoin Supply Shrinking, Despite Maintaining Presence

Binance Faces Stablecoin Supply Dilemma The supply of Binance's stablecoin, FDUSD, has been steadily decreasing in recent months. Despite this decline, Binance continues to maintain its presence on the popular cryptocurrency exchange. According to data from on-chain analytics firm CryptoQuant, the supply of FDUSD has fallen by over 50% since its peak in early 2023. This decline is attributed to a combination of factors, including increased redemptions and a lack of new issuance. Despite the supply shrinkage, FDUSD remains one of the top stablecoins by market capitalization. Binance's continued support for the stablecoin suggests that it believes it has a long-term future. The shrinking supply of FDUSD is a trend that bears watching. If the decline continues, it could eventually impact Binance's overall liquidity and stability. However, for the time being, Binance appears committed to supporting FDUSD and maintaining its presence in the stablecoin market.

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