Together with PAX Treasury, Binance is giving the cryptocurrency markets a cash injection of another $5M to further bolster markets in this difficult time.
Cryptocurrency markets are rallying today amid early positive indicators from U.S. financial markets despite the fact that stocks couldn’t hold onto their gains. Binance is looking to keep up this momentum by issuing more of its stablecoin, Binance (BUSD).
More Than $5M of BUSD Set to Enter Markets
PAX Treasury has been working closely with Binance to issue its stablecoin for some time now. As BeInCrypto reported, the treasury has been the main issuer of Binance’s only stablecoin, BUSD. Today, another 5,148,815 BUSD was issued by the treasury. This comes just two days after Binance issued some $7M in BUSD to calm markets.
The latest issuing was reported by Whale Alert (@whale_alert) earlier today.
5,148,815 #BUSD ($5,156,775 USD) minted at PAX Treasury
— Whale Alert (@whale_alert) March 17, 2020
Altogether, Binance has issued more than $12M of its stablecoin in just two days or so through PAX Treasury.
A Small Drop in the Bucket
Arguably, the amount is too small to seriously impact the market, but it shows that exchanges are starting to be more involved in stabilizing prices. Much like we have covered the Fed and its ‘cash injections,’ the issuing of more stablecoins is effectively a ‘cash injection’ for the cryptocurrency world. Whether or not this is good for the market long-term is debatable.
Binance USD (BUSD) has come a long way in just the past few months. BeInCrypto reported last September that liquidity for Binance’s stablecoin was so bad then that somebody was able to purchase Bitcoin for $1,800 with it. It is important for stablecoins to not trade without proper liquidity or else we can start seeing major gaps in the order books.
Nowadays, Binance USD (BUSD) is in much better shape than it once was. Recent metrics say that it currently boasts a volume of some $127M and a market capitalization of $144M. To put things in perspective, on Jan. 1, BUSD had a market capitalization of just $17M. It’s clear that Binance’s strategy for the rest of 2020 is to make its stablecoin more prominent, which it has been pursuing aggressively thus far.