Simon Ng Amidst the drastic decrease in stablecoin dominance, Paxos has just pulled the plug on its $5 billion dollar stablecoin. This move could be a sign of things to come as other stablecoin projects falter. Could this be the start of a bull run for cryptocurrencies?
$5 billion in stablecoins destroyed as Paxos pulls plug on dollar peg
Since Paxos announced on Feb. 13, 2023, that it would no longer issue the dollar-pegged crypto asset BUSD, nearly $5 billion worth of BUSD stablecoins have been redeemed. This has caused the stability of the crypto asset to decline significantly and put it in competition with other top-performing cryptos.
The stablecoin market is in a lot of trouble, and it’s not just Paxos who are dropping out of the game. BUSD, the $5 billion stablecoin, has seen its share of destruction recently as other stablecoins have pulled back their support. This could be the start of a bull run for stablecoins, but it’s going to take a lot of work to get there.
