A Stablecoin's Increase in Market Share Triggered the "Second Great Stablecoin War"

Since Binance announced that it will automatically convert USDC, USDP and TUSD to BUSD on September 6, the share of BUSD in the total stablecoin market increased by 10.01% to 15.48%.

FTX CEO Sam Bankman-Fried (SBF) says the rise of the Binance USD (BUSD) stablecoin could trigger the "second great stablecoin war", given how quickly its market capitalization stock market has risen in recent months.

Bankman-Fried's recent comments come a month after Binance continued plans to automatically convert a slew of supported stablecoins on its exchange to BUSD on September 6, which saw BUSD share in the total stablecoin market increase since then.

BUSD's share of the total stablecoin market increased from 10.01% on September 7 to 15.48% on October 22, according to crypto data aggregator Coin Metrics.

Meanwhile, the market capitalization of BUSD has risen 3.3% over the past 30 days to $21.7 billion, with the stablecoin only outpacing Tether USD (USDT) at $68.4 billion. dollars and the USD Coin (USDC) at $43.9 billion.

Commenting on the asset growth after the move, the FTX CEO noted via Twitter on October 23 that "Binance converts USDC -> BUSD, and we see the change in supply", adding "so begins the second great stablecoin war". ."

Bankman-Fried noted that the first "stablecoin war" was fought between five stablecoins in 2018, making USDT and USDC the two leaders.

Today, USDT still holds a sizable lead with a 48% market share in the stablecoin market, although it has grown from 88% since 2020, while USDC has increased its market share from 10% to 32% over the same period.

The rise of Binance stablecoins is even larger, however, increasing more than 30x from 0.5% to 15.48% over the same period.

Tether's share of the stablecoin market has fallen from 88% to 48% since 2020.

USDC tripled its market share from 10% to 32%

BUSD (Binance...