Binance BUSD Drops $1 Billion in Market Cap, Falls to Fourth Among Stablecoins – What's Going On?

Binance-branded BUSD stablecoin has lost another $1 billion in market cap, descending to the fourth position among stablecoins.

The Binance USD (BUSD) stablecoin currently has a market cap of around $4.3 billion, down from $5.5 billion a month ago, data by CoinMarketCap shows.

This places BUSD in fourth position among stablecoins and right behind decentralized stablecoin DAI, which has seen its market cap rise to more than $4.6 billion over the past couple of days.

Tether’s USDT and USDC Coin (USDC) are the two largest stablecoins in the market, each with a market cap of around $83 billion and $28 billion, respectively.

BUSD’s continued decline in market cap comes after the New York Department of Financial Services (DFS) ordered Paxos, a crypto firm that issues the stablecoin, to stop minting BUSD tokens.

In a consumer alert, the DFS said it issued the order “as a result of several unresolved issues related to Paxos’ oversight of its relationship with Binance.”