Binances Stablecoin (BUSD) is growing strongly
It is a difficult time for the cryptocurrency market. And since the onset of the corona virus crisis, the price of crypto assets has been affected and investors are losing confidence in virtually all markets. However, there is a currency that has not only remained, but has gained in value. And today we’re going to tell you why Binance’s stable currency is growing rapidly.
Why is there a stable Binance currency?
Barn coins have been an integral part of the crypto world for several years. Well, they’re trying to solve one of the big problems with cryptocurrencies: the volatility of their price. As a result, we can observe sudden falls and surprising price increases in the main virtual currencies within a few hours.
Stable coins combine the best features of fiat money and cryptocurrencies. Take the stability of the price of traditional money and combine it with the versatility and speed that blockchain technology offers for virtual currencies.
They do this by anchoring the value of a stable currency in a proven strong asset such as the US dollar or gold. Therefore, for each token issued in the stable currency, there must be a counterpart in the asset on which it is based and which is deposited in a reserve fund that serves as a guarantee of the value of the stable currency.
This would provide greater security for cryptocurrency users wishing to trade or save in virtual currencies. Well, they would have a guarantee that the value of their investment or savings would not change overnight if the crypto market did so. Rather, it remains stable over time.
This is a fundamental characteristic for a company like Binance. Well, cryptocurrency exchange works with thousands of users looking for security, speed, and stability in their investments. By creating a stable Binance currency, BUSD, the exchange would offer these users exactly what they need.
Bus on the rise
Of course, competition between the various stable currencies does not escape the dynamics of the cryptocurrency market. Where crypto assets like Bitcoin, Ethereum, Bitcoin Cash or Tron compete daily to attract more users and achieve a larger market cap.
With stable currencies, tether (USDT) would be the most important by market cap. This is the virtual currency supported by Bitfinex that carries the virtual currency title, stable or not, with the highest market transaction volume per day.
Binance’s stable coin would not be far behind, however. Well, today BUSD is growing strongly, leading the shift in market capitalization between stable coins. Show how much BUSD According to ICO Analytics, Binances Stablecoin has grown 124% so far this month.
At the time of writing, Binance’s stable currency would be trading on the order of $ 0.99 per token. Mainly due to the volatility in the international financial markets. What makes virtual currencies with a value backed by solid assets more attractive, and even surpasses other cryptocurrencies like Bitcoin, which haven’t yet managed to recover from the initial attacks of the economic crisis caused by the corona virus.