- Circle Supports Binance’s USDC Conversion Decision
- The company said that the liquidity of the asset has only strengthened
- Critics say that the exchange is winning back the market in this way
Recall, that on September 2, it became known that Binance was suspending the processing of three large stablecoins. At the same time, the exchange introduced its automatic conversion into BUSD. Contrary to criticism, experts say that this is the right decision that will benefit the USDC.
Yesterday, September 6, Circle co-founder and CEO Jeremy Aller commented on this situation. According to him, there is no reason to panic, as USDC liquidity has only increased.
“Convergent dollar books on Binance, the same as on FTX and Coinbase, that’s good. USDC liquidity has only strengthened,” he stressed.
In practice, Binance’s decision really benefited the asset. If earlier the user had to transfer USDC, for example, to BUSD, now this happens automatically. The flow of stablecoins to the site has only grown.
However, there are also commentators who consider the situation a losing one for Circle. In their opinion, the USDC conversion will lead to intensive minting of BUSD and a reduction in the volume of stablecoins, which is confirmed by the statistics of the exchange’s portfolio. In July, the site controlled 2.5 billion ” coins “, by the end of August – 1 billion.
Note that BUSD is in third place in the top stablecoins with a market share of 15.1%. Automatic conversion can really improve the position of the asset a little, but it is still far from the leader of the rating, USDT. Its share is 50.3%.
Speaking of which. Binance has stated that it has no plans to introduce automatic USDT to BUSD conversion. However, the representative of the exchange does not deny that the situation may change in the future.