BUSD’s market capitalization has fallen 90% from its all-time high of $23.49 billion on Nov. 15, 2022, according to CoinMarketCap data. The stablecoin's current market cap is around $2 billion — down over $21 billion from its all-time high.
The news comes as the market share of the First Digital USD stablecoin continues to grow — now at a market cap of over $470 million, according to CoinGecko. The stablecoin issued by Hong Kong-based First Digital Group launched in June of this year. In February of this year, Paxos said it was halting the minting of new stablecoins. The announcement came after Paxos received an order from the NYDFS to stop issuing the stablecoin. On the same day, the SEC said it would sue Paxos for listing BUSD, alleging it is an unregistered security. "BUSD will remain fully supported by Paxos and redeemable to onboarded customers through at least February 2024," the stablecoin issuer said in an announcement.
Tuesday's report from CoinGecko outlined how the market cap of major stablecoins dropped significantly in the third quarter. "BUSD saw the largest percentage decline of -45.3%, with a drop of -$1.87 billion," CoinGecko said.