Binance USD BUSD
Binance USD Price
Binance USD Chart
What is Binance USD (BUSD) ?
BUSD, or Binance USD, is a fiat-backed stablecoin that is tied to the US dollar. One US dollar is maintained in reserve for every unit of BUSD. In other words, the supply of Binance USD price is fixed at a 1:1 ratio to the supply of US dollars. Holders can exchange their tokens for fiat currency and vice versa. The project's owner, Paxos, publishes monthly audits of BUSD reserves.
Paxos and Binance created the stablecoin BUSD. Paxos leverages blockchain technology to provide Stablecoin as a Service to third-party enterprises. In the past, they also produced PAX Gold, a gold-backed stablecoin (PAXG). Both BUSD and PAXG coins are regulated by the New York State Department of Financial Services. More details about Paxos can be found on their official website.
On a technical level, BUSD is a fiat-backed stablecoin that is pegged to the US dollar. Paxos holds a number of US dollars equivalent to the whole supply of BUSD in custody as reserves in FDIC-insured US institutions. When the value of the US dollar grows or falls, so does the value of the British pound. This is the most frequent and conventional stablecoin model.
Binance USD transactions benefit from three essential characteristics: accessibility, flexibility, and speed. The cryptocurrency may be purchased on Paxos or Binance. You may buy them via Binance's exchange or fiat gateway services, or you can transfer an amount in US dollars to Paxos, who will issue fresh BUSD tokens for you. BUSD also provides flexibility in that it allows crypto users to rapidly convert their holdings into a stable asset without leaving the network. Finally, by utilizing BUSD, a user may rapidly and cheaply transmit money throughout the world.
The cryptocurrency may be found on three blockchains: Ethereum, Binance Smart Chain, and Binance Chain. Holders can transfer their tokens across blockchains according to their needs. This may be done on the Binance exchange (when withdrawing funds) or via Binance Bridge.
Binance USD Price
BUSD, as a stablecoin, is intended to have a stable market value. It enables investors and traders to own a low-volatility asset on the blockchain without leaving the cryptocurrency realm. Recently, in June 2021, Binance just announced that BUSD has reached the $10B market cap milestone, ranking 10th in the overall crypto market and 3rd among stablecoins. You can check out Binance USD live Price here.
BUSD token address (BSC): 0x4Fabb145d64652a948d72533023f6E7A623C7C53
BUSD token address (Polygon): 0xe9e7cea3dedca5984780bafc599bd69add087d56
How does BUSD work?
In comparison to other forms of stablecoins, the method for maintaining BUSD's peg is rather straightforward. Each BUSD can be exchanged for one USD from the reserves. Paxos will burn your tokens and reward you with fiat cash if you provide them BUSD. This system maintains a constant 1:1 ratio of supply to reserves.
Arbitrager traders will buy BUSD in huge amounts once the BUSD price falls below $1 per 1 BUSD. Even a price of $0.98 may give them a chance to profit. Arbitrageurs can use the Paxos network to convert huge quantities of BUSD token into cash after acquiring big amounts of BUSD. Increasing demand drives the BUSD token price back up to $1, reinstating the 1:1 peg.
How is BUSD Governed?
New York state officials have imposed certain requirements on Paxos, Binance, and how the stablecoin must function. Paxos must carefully oversee the production and burning of BUSD tokens in addition to ensuring that the token is completely collateralized. Paxos has the right to suspend accounts and withdraw money in the event of unlawful conduct. All of these criteria are in accordance with the Trust Charter and the New York banking rules that apply to stablecoins. SetLawEnforcementRole is a new function implemented within the token's smart contracts that represents the stablecoin's regulation. This tiny piece of code allows Paxos to employ the previously described powers to enforce NYDFS laws.
BUSD undergoes monthly attestations audit with official audit report available on Paxos website.
On-chain Metrics for BUSD
BUSD is the second-largest stablecoin by market cap as of June 2021, with a market valuation of about $9,600,000,000. This number covers the coin's worth in ERC-20 tokens as well as the BEP-2 and BEP-20 variants. While it has grown in popularity, there is still a substantial disparity in market capitalization between it and its main competitor, Tether.
The so-called BUSD Binance also has a pretty high Volume/Market Cap of 0.4286 as of this writing. This statistic compares a coin's 24-hour trading volume to its entire market cap. For example, Bitcoin (BTC) has a Volume/Market Cap of 0.06059. In essence, this demonstrates that BUSD is being actively spent rather than simply sitting in wallets as a long-term investment. This idea corresponds to the previously listed application scenarios.
Why Should You Buy Binance USD?
What Sets BUSD Different From Other Stablecoins?
BUSD differs from other stablecoins on the market for a number of key reasons. To begin with, BUSD is a form of stablecoin that is backed by fiat currency. Other crypto-backed stablecoins, such as DAI, use crypto assets as reserves. There are also algorithmic stablecoins that do not require any collateral. These projects use algorithms to produce and burn tokens in an attempt to regulate the quantity of stablecoins.
But what distinguishes BUSD from other fiat-backed stablecoins? One important issue is that Paxos publishes regular audits demonstrating that the US dollar reserves match the supply of BUSD 1:1.
These audits are completed by the accounting company Withum as part of BUSD's requirements as a regulated cryptocurrency. This is not done by every project, and some fiat-backed stablecoins may not have all of the reserves they claim.
A case initiated by the New York Attorney General, for example, revealed that the reserves for the stablecoin Tether (USDT) were not 100 percent fiat-backed. Tether's earlier remarks were directly contradicted by this revelation.
Binance USD Use Case
BUSD offers a wide range of applications for crypto investors and traders. Apart from trading opportunity on ARKEN, BUSD also offers ranges of benefits:
Avoid price volatility in the cryptocurrency markets.
The cryptocurrency environment may be quite volatile. In crypto, as in traditional financial markets, there is a need for stable assets, particularly when the market gets overly turbulent. Traditional investors can weather a turbulent period by changing assets into cash or securities. Crypto investors and traders have the same chance with BUSD.
Gains can be locked in without the need to change to fiat currency.
When it comes to exiting an investment and securing gains, BUSD is a very liquid option. There is no need to wait for an exchange to put fiat cash into your bank account. You do not have to wait to fill up your account with additional fiat cash if you wish to open a new position or acquire another asset.
BUSD is a popular stablecoin on Binance Smart Chain, where many automated market makers trade it (AMM). When prices fluctuate amongst AMMs, these liquidity pools may offer arbitrage possibilities. Holding BUSD allows arbitrageurs to shift rapidly between exchanges and take advantage of BUSD's widespread adoption across many platforms. As previously stated, there may be arbitrage possibilities by acquiring BUSD and cashing it out for fiat.
- Charles Cascarilla (CEO of Paxos)
- Changpeng Zhao (CEO of Binance)
- Blockchain Foundry Inc.,
Historical Data for Binance USD Price
|Jan 15, 2023||$1.0000||$1.0000||$0.99778||$1.0000||$8,164,451,316||$16,342,186,309|
|Jan 14, 2023||$1.0000||$1.0000||$0.99766||$0.99766||$15,000,476,339||$16,425,085,197|
|Jan 13, 2023||$1.0000||$1.0000||$0.99541||$1.0000||$10,450,106,673||$16,366,894,105|
|Jan 12, 2023||$1.0000||$1.0000||$0.99737||$1.0000||$12,616,872,199||$16,188,034,628|
|Jan 11, 2023||$1.0000||$1.01000||$0.99587||$1.0000||$7,541,029,102||$16,704,871,661|
|Jan 10, 2023||$1.0000||$1.0000||$0.99839||$0.99904||$6,882,877,137||$16,288,817,813|
|Jan 9, 2023||$1.0000||$1.0000||$0.99917||$1.0000||$8,599,096,795||$16,325,313,264|