• Binance recently burned $2 billion worth of BUSD on the BNB Chain and released an equivalent amount on the Ethereum [ETH] network.
• After the burn, BUSD traded above its peg at $1.02 as of writing and had a relatively high transaction volume.
• The total BUSD held in exchange reserves has decreased by over 21% or $3 billion since 13 February 2021.
Binance Burned $2 Billion Worth of BUSD
On 22 February, Binance burned $2 billion worth of its own stablecoin, BUSD. This was done to maintain the peg at $1 for the token despite issues with regulatory authorities such as the Securities and Exchange Commission (SEC).
Price Maintains Above Peg After Burn
After being burned, the price of one BUSD went a bit over its peg as its reserve on Binance continued to reduce. However, despite this, it maintained above the peg at a value of $1.02 as of writing due to high trading volumes for this asset.
Total Reserve Decreases Despite High Volumes
Despite a relatively high trading volume for this asset, Paxos‘ announcement that it would stop minting more tokens caused a decrease in the total amount held in exchange reserves from around 14.3 billion down to 10.7 billion – representing an overall decline of over 21%.
Binance USD Receives SEC Attention
Issues with regulatory authorities such as the SEC have made discussions about Binance USD very popular lately. Despite this however, work with this stablecoin is still continuing as normal according to official accounts from within the company itself.
Overall, due to recent events regarding both regulatory authorities and burning activities by Binance itself, discussions about their own stablecoin are becoming more popular but work with it proceeding nonetheless while maintaining prices above its peg despite decreases in overall reserve amounts held by exchanges