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<\/p>\nA newly published report reveals that in February, the total market capitalization of the stablecoins in the sector fell by 0.68% to $136 billion, making their lowest market capitalization since September 2021 and the eleventh consecutive monthly decline.<\/p>\n
CryptoCompare\u2019s latest\u00a0Stablecoins & CBDCs Report adds that the total market share of stablecoins in the sector is now sitting at 11.4%, down from around 12.31% in January. This is their lowest market share since April 2022.<\/p>\n
The decline, the report adds, highlights the \u201crecent rally in the prices of crypto assets and the declining stablecoin market cap.\u201d<\/p>\n
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The report also notes that the market capitalization of Binance USD (BUSD), a stablecoin whose issuer Paxos has been ordered by the New York Department of Financial Services (NYDFS) to stop issuing it, has fallen 18% to $13.2 billion, likely as a result of the order.<\/p>\n
Moreover, Paxos has been\u00a0told by the U.S. Securities and Exchange Commission (SEC) the regulator is planning to sue it for violating investor protection laws in a letter known as a Wells notice, which it uses to inform entities of possible enforcement action.<\/p>\n
The noticed alleged Binance USD (BUSD) is an unregistered security. BUSD is a Binance-branded stablecoin issued by Paxos and listed on several exchanges, including Paxos\u2019 itBit platform.<\/p>\n
CryptoCompare\u2019s report adds that meanwhile, the market capitalization of USDT has increased by $2 billion. The figure, coupled with a 676% rise in BUSD\/USDT trading volume on February 13, suggests that a large part of the BUSD has been swapped for USDT on the exchange.\u201d<\/p>\n
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In February, the market share of USDT\u2019s stablecoin increased from 48.7% to 51.7%, marking its highest level since October 2021, the report adds.<\/p>\n
Following the SEC\u2019s move against BUSD, there were significant outflows of Paxos\u2019 stablecoins. This led to a 15.8% and 24.37% decline in the market cap of BinanceUSD (BUSD) and Pax Dollar (USDP) to $13.3 billion and $729 million, respectively. As a result, USDD surpassed USDP as the 7th largest stablecoin, with its market cap rising 0.57% to $724 million in February.<\/p>\n
The decline in BUSD may have benefited Tether\u2019s USDT and TrueUSD (TUSD), as their market capitalization increased by 3.85% and 2.31% to $70.4 billion and $968 million, respectively. In contrast, the market cap of USD Coin (USDC) fell 1.76% to $41.4 billion, the report details.<\/p>\n