Allaire said that the exchange’s move will increase USDC’s profit. He was not alone in agreeing that Binance’s decision will be positive for the stablecoin and the market in general.
- Circle CEO comments on new Binance measure.
- Exchange will no longer offer trading support the opposite of Resistance, it is a threshold that crypto’s price doesn’t fall below. for USDC.
- USDC deposits and withdrawals will still be accepted.
- Movement will promote market liquidity.
- USDT and USDC continue to dominate.
In the opinion of Jeremy Allaire, co-founder and CEO of Circle the decision to Binance to forcibly convert USDC funds into its own native stable currency BUSD, is not necessarily negative and could be good for USD Coin a coin can refer to a cryptocurrency that can operate independently or to a single unit of such cryptocurrency. .
Allaire, who runs the company that issues the stablecoin a cryptocurrency with extremely low volatility, sometimes used as a means of portfolio diversification. Examples include gold-backed cryptocurrency or fiat-pegged cryptocurrency. USD Coin (USDC), shared his perspective at Twitter after the news about the measure of the exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. generated a flurry of responses among the crypto-investor community. In a series of tweets argued that the decision will increase USDC’s profitability and even benefit market liquidity.
Binance is trying to consolidate dollar liquidity how easily a cryptocurrency can be bought and sold without impacting the overall market price. with cash cash is the most liquid form of money: physical coins and banknotes in the most narrow sense of the term. equivalent stablecoins. That’s good for liquidity and market an area or arena, online or offline, in which commercial dealings are conducted. depth.
Ultimately, the measure of Binance “ will lead to a gradual shift of the net share of USDT to BUSD and USDC “, he added by way of prediction in a separate publication.
Prediction: this move leads to a gradual net share shift from USDT to BUSD and USDC. https://t.co/pvITiUXo5d
– Jeremy Allaire (@jerallaire) September 5, 2022
Measure of Binance is good for USDC
The comments come in response to a change change — a concept relevant to cryptocurrencies that use the UTXO model — is the number of coins sent back to a user after they use their unspent outputs to initiate a transaction. in the policy of Binance which reported on Monday that the deposits for the stablecoins USDC, USDP and TUSD will now automatically convert to BUSD . As of September 29, balances in such assets will be expressed in BUSD, which also implies that the trading pairs for such assets will be expressed in BUSD. stablecoins will cease to exist.
While trading in USDC will stop at the end of the month, the measure will not affect USDC deposits and withdrawals. token a digital unit designed with utility in mind, providing access and use of a larger crypto economic system. . That is, clients will be able to continue to move USDC on and off the platform, with the proviso that the funds will be denominated and consolidated in BUSD. The measure does not affect the main stable currency by capitalization,Tether(USDT).
In this regard, Allaire explained that Binance was not ending support for USDC, as many observers noted, as people will still have the ability to deposit and withdraw the coin. The director added that other cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. exchanges, like FTX y Coinbase, already use the converging books of stable dollar currencies.
With consolidated dollar books, it will now be easier and more attractive to move USDC to and from Binance to trade the major markets. Given how limited the use of BUSD is outside of Binance, this will likely benefit the use of USDC as the preferred stable currency currency is a medium of exchange that defines value. rail between CEX and DEX.
Given how limited BUSD usage is outside of Binance, this will likely benefit USDC usage as the preferred cross CEX and DEX (decentralized exchange)A peer-to-peer exchange allowing users to trade cryptocurrency without the need for an intermediary. stablecoin rail. Unless Binance can convince all their competitors to get behind BUSD. Unlikely. 6/
– Jeremy Allaire (@jerallaire) September 6, 2022
Beneficial for customers and the market
Allaire also concurred with the views of the CEO of Wintermute Evgeny Gaevoy, who had previously shared on Twitter his personal view on the announcement of Binance .
“ Eliminating most pairs of stablecoins is a good thing: the liquidity does not have to be divided among multiple stable currencies which facilitates the work of market makers and [makes] markets in general more liquid. “said Gaevoy, who noted that the decision was good for USDC as well as the other stablecoins in question.
Gaevoy noted that the measure also represents an ease for clients, who will no longer need to exchange USDC for BUSD or USDT to trade leveraged products. At the end of the day, it doesn’t matter what currency the trades are denominated in, what is important is that Binance still supports USDC deposits and withdrawals.
2) this is positive for USDC (and TUSD and others) – you should still be able to deposit and withdraw USDC seamlessly to/from binance. Before this change you would need to convert it to BUSD/USDT and then use it to trade margined perps
— wishful cynic (@EvgenyGaevoy) September 5, 2022
He added, on the other hand, that the measure represents a challenge for the dominance a measure of Bitcoin's value in the context of the larger cryptocurrency market. ofTetheron the market. “ Customers will continue to wonder what makes Tether “special” enough to worry about conversion. And in the long a situation where you buy a cryptocurrency with the expectation of selling it at a higher price for profit later. run, liquidity in non-USDT pairs will increase. “, sostuvo.
Tether and USDC continue to dominate
USDT continues to be the largest stable currency by market capitalization with USD $67 billion at the time of writing. The stablecoin The US dollar-linked centralized a centralized organizational structure is one in which a single node or a small number of them are in control of an entire network. exchange is highly popular with investors, who often use it as an entry and exit mechanism in the digital digital technologies are these electronic tools that have the ability to generate, store or even process data. asset market.
In comparison, USDC from Circle ranks as the second largest digital asset in its category, with a market capitalization of USD $51.7 billion, according to data from CoinMarketCap . The stable currency of Binance BUSD follows in third place, with a capitalization of $19.4 billion.
Some observers in the cryptocurrency community have suggested that the automatic conversion of Binance to BUSC could boost liquidity and the market for the currency. However, the switch seems unlikely, as noted by Allaire, who pointed out that for that to happen the exchange would have to “move to the BUSC. convince all their competitors”. to support the stablecoin .
According to data from Nansen shared in Twitter most of the exchanges have little or no BUSD, compared to the large amounts of USDC . Meanwhile, the USDC held by Binance has declined to less than 1 billion from 2.5 billion in July, as added by Cointelegraph . The exchange is worth around 5 billion USDT.
Article by Hannah Estefania Perez / DiarioBitcoin
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