Trusted

Binance USD (BUSD) Market Cap Soared More Than $400 Million in May

2 mins
Updated by Ryan Boltman
Join our Trading Community on Telegram

In Brief

  • BUSD market cap spiked despite an overall bearish market.
  • BUSD continues to maintain its peg in June.
  • The BUSD market cap was approximately $18 billion by the end of May.
  • promo

BUSD joined USDC as one of the few cryptocurrencies that withstood the market crash of May which led to a steep decline in prices that saw billions of dollars wiped off the market.

The token issued by Binance remains a top 10 digital asset by market capitalization in June. According to Be[In]Crypto Research, BUSD closed the fifth month of the year with a market capitalization of around $18.2 billion.

This marked a 2% increase from the opening day’s market value. BUSD saw a trading volume in the region of $4.08 billion which corresponded to a market capitalization of approximately $17.71 billion on May 1.

Source: BUSD Historical Data from CoinMarketCap

Why the increasing market capitalization? 

The high demand for the stablecoin during the peak of the crash on May 9 to 13 can be credited for the soaring market capitalization of the token. 

The number of large transactions peaked on May 12. On that day, transactions involving BUSD were 796,000 at a price of $0.966500.

Source: May 2022 Number of Large Transactions Chart by Into the Block

This corresponded with a transaction volume of 4.33 billion tokens at the same price.

Source: May 2022 BUSD Total Volume in BUSD Chart by Into the Block

The total transaction volume of 4.33 billion BUSD multiplied by $0.966500 equals $4.18 billion.

Source: BUSD Total Volume in USD Chart by Into the Block

On May 12, it opened at $1, reached an intraday high of $1.02, tested an intraday low of $1, and closed at $1. 

The trading volume for the day was $19.14 billion and corresponded to a market capitalization of $17.09 billion. Increased demand by traders to offset huge losses saw the token maintain its peg by the close of the month. 

BUSD price reaction 

BUSD opened on May 1, at $0.9994, reached a monthly high of $1.02 on May 12, tested a monthly low of $0.9978 on May 9, and ended the month with a trading price of $1. Overall, there was a 0.6% increase in the opening and closing price of the token in May.

Source: BUSD/USD Chart by TradingView

What do you think about this subject? Write to us and tell us!

Top crypto projects in the US | November 2024
Coinbase Coinbase Explore
Coinrule Coinrule Explore
Uphold Uphold Explore
3Commas 3Commas Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | November 2024
Coinbase Coinbase Explore
Coinrule Coinrule Explore
Uphold Uphold Explore
3Commas 3Commas Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | November 2024

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

raphael_minter-e1644218633733.png
Raphael Minter
As a writer, researcher, and analyst of centralized and decentralized financial instruments (stocks, commodities, metals, and cryptocurrencies), he started experimenting with financial asset trading in 2011. He ventured into full-time long term investing of cryptocurrencies in 2016.
READ FULL BIO
Sponsored
Sponsored