Growing from $1B to $10B
The benefits of the Binance ecosystem, which include a diverse portfolio of crypto products and services along with some of the industry’s lowest trading fees, played a crucial role in BUSD’s initial breakthrough, which resulted in the market cap rising from $30M at the beginning of 2020 to $1B at the end of 2020.
Users chose BUSD for a combination of reasons, including the stablecoin’s strict compliance standards, wide range of use-cases and support for a diverse set of yield products. The market cap grew from $1B to $10B in less than half a year, making BUSD the second-largest asset by market cap on Binance Smart Chain (BSC), as well as the number one in terms of total locked value (TVL). In addition, BUSD was the most widely used stablecoin on BSC. Notably, BUSD achieved this growth in record time, outpacing efforts by competitors by 100 days.
BUSD milestones
July 15, 2019. BUSD Launched (First batch issued)
March 10, 2020. 100M Market Cap Milestone
August 6, 2020. Listed on the approved Greenlist of NYDFS
January 1, 2021. $1B Market Cap Milestone
June 28, 2021. $10B Market Cap Milestone
1.1M users prefer BUSD for its strict compliance standards and zero transaction fees.
There are currently around 1.1M BUSD holders, with 700,000 holding on-chain (number of on-chain addresses as of June 29), and over 400,000 holding on Binance and other platforms.
Read further for a deep dive into the factors behind BUSD’s fast growth, as well as the different use-cases that attract users from around the world.
Strict compliance standards
Each BUSD token is strictly pegged to the US Dollar (USD) at a 1:1 ratio, fiat assets are held 1:1 in FDIC-insured U.S. banks and can be redeemed at any time. In addition, The Asset Attention Report of BUSD balance is issued monthly by an audit company.
BUSD was approved by the New York State Department of Financial Services (NYDFS) and was issued by Paxos in September 2019. In August 2020, BUSD became “Greenlisted” by the NYDFS, making it pre-approved for custody and trading by any of the NYDFS’ virtual currency licensees.
As of June 2021, there are 13 virtual currency tokens on this green list, including BUSD, PAX, and BTC. BUSD’s high compliance standards attract new users everyday, and helps large institutions around the world bridge the gap between traditional and decentralized finance within a safe and secure environment.
ZERO transactions fees, maker fees, and withdrawal fees.
According to Coingecko, BUSD consistently ranks top two in 24 hour trading volume. BUSD’s strong liquidity is maintained by the different incentives and promotions we offer our users:
Zero transaction fees for 4 BUSD stable coin trading pairs (BUSD/USDT, USDC/BUSD, TUSD/BUSD, PAX/BUSD)
Zero Maker fees on all BUSD trading pairs.
Zero fees to withdraw BUSD (BEP20) through Binance Smart Chain.
Leading the way in CeFi and DeFi
Trading, “deposit to earn” and payment are core use cases for many stablecoins. BUSD is not only leading the market in trading and payments, but also gradually taking the lead in decentralized finance. Here’s a quick rundown of the different use-cases we offer our 1.1M BUSD holders:
Where you can use BUSD
Strong liquidity coupled with low transaction fees have made BUSD an appealing asset for the trading and lending markets. There are more than 30 crypto exchanges that list BUSD in addition to more than 200 BUSD trading pairs. In addition to trading BUSD to save on transaction fees, users can purchase the latest listed tokens with BUSD and use it as collateral for lending on some crypto exchanges.
Today, more than 36 platforms and over 20 wallets support BUSD when it comes to trading and storage, signalling a growing demand for a stable and compliant cryptocurrency. BUSD has established its position as a leading stablecoin for crypto users who are looking to avoid price volatility in the market and eliminate the need for frequent fiat conversions. BUSD is currently issued on Ethereum and BSC, and supports fast transfers worldwide with low fees ($0.03).
Stablecoins like BUSD play a critical role in the world of decentralization and in providing a solid foundation for the continued growth of DeFi. BUSD is widely used in Binance Smart Chain (BSC) and Ethereum when it comes to trading, lending and other scenarios. According to the BSC Project, there are currently more than 400 decentralized applications that support BUSD. On 21st April 2021, the single-day transfer amount of BUSD reached a peak of $261 billion and over 737k transactions on BSC.
According to the BSC explorer BscScan, the BUSD daily active addresses averaged around 10-15k last month. High-frequency traders, arbitrage users and more are drawn to BUSD’s high liquidity and low transaction fees, along with its wide application in both centralized and decentralized platforms.
Explore a variety of BUSD yield products
"Deposit to earn" and lending are the two biggest contributors to BUSD’s fast-growing market cap. Users can choose from various yield products that meet their risk tolerances and platform preferences. Binance Earn provides a series of fixed and flexible savings products, ranging from 2-6% to 10-50% Annual percentage yield (APY). These products are categorized into Flexible Savings, Locked Savings, Launchpool, Liquid Swap, Dual Investment, and other products. Visit Binance Earn for the latest yields, sorted by product.
Some of the most commonly used techniques in DeFi include yield farming or liquidity pools(which may feature yields of up to 300% APY, but introduce users to risks like impermanent loss), and single token deposits in vaults (Up to 35% APY) which are most commonly used in DeFi investing. Users are advised to do their own research and learn how to spot DeFi scams in advance.
Note: The information above does not constitute financial advice, nor does it imply any endorsement for the projects/products above; Please do your own research before making any financial decisions.
Payment remains the most common use-case for stablecoins. Since May, Binance Pay supports BUSD for both online, offline payment and settlement, allowing users to pay BUSD for hotel reservations with a QR code. In June, Binance NFT began supporting BUSD quotations for NFT products, with over $2M BUSD in NFT purchases over the first 20 hours. In addition, payment method providers such as BitPay, Simplex, Moonpay, Alchemy and more support BUSD for payment with thousands of online and offline merchants worldwide. BUSD is paving the way for stablecoins and presenting a viable opportunity for users to enjoy practical use cases for cryptocurrencies in daily life.
Going forward, BUSD will continue to innovate and develop its strengths, optimize API products and increase collaboration with different payment method providers and distribution channels. BUSD will also maintain its wide appeal to users while providing steady revenue streams for our partners. Thank you for your continued support as BUSD continues to break new milestones.
About BUSD
BUSD is a 1:1 USD-backed stablecoin issued by Paxos and approved by the New York State Department of Financial Services (NYDFS).
Interested in collaborating with BUSD or want to learn more? Contact us through this Request Form, and our team will get back to you within 3 working days.
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