See More

Gemini Just Burnt 1/4 of Total GUSD Stablecoin Supply

2 mins
Updated by Kyle Baird
Join our Trading Community on Telegram
Around a quarter of all Gemini Dollars (GUSD) was just burned. The stablecoin has had a rocky time since its inception.
Around 1,035,020 GUSD was just burned at Gemini. Given that it’s circulating supply is just 4.1M, that’s about a quarter of all GUSD in circulation entirely. The burn was picked up by Whale Alert (@whale_alert) recently, which many were shocked to see. It is apparently the first time a large GUSD move of any kind has been picked up by Whale Alert.

Poor Performance

Many were quick to point out that that GUSD has been doing poorly since its introduction to the market. Intended as a stablecoin, Gemini Dollars has not been frequently used — despite the backing from the Winklevoss twins’ exchange. GUSD was announced in September 2018 and prided itself on being one of the few stablecoins to gain complete regulatory clearance. The stablecoin was signed off by the New York Department of Financial Services. Since then, however, it has fallen into disuse and relative obscurity. Bitcoin BTC Whale Binance Gemini Having a trading volume of around $150M in January 2019, it has since plummeted to $3.8M at the time of writing. The number of GUSD circulating is also low compared to other stablecoins. USD Coin (USDC), for comparison, has a market capitalization of $467M at the time of writing — with a circulating supply of 464,165,424. Similarly to Gemini Dollars, USD Coin is a stablecoin pegged to the U.S. dollar.

Is GUSD a Failed Stablecoin?

The latest burn by GUSD may indicate serious problems with the stablecoin. One transaction cashing out a quarter of the entire supply is worrying — but what should be more concerning for Gemini is its declining trading volume. Despite often being considered a top-tier exchange, the platform only boasts $8.6M in trading volume total — with 78 percent of this volume being on its BTC/USD pair.
Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Exodus Exodus Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Exodus Exodus Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024

Trusted

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

photo_Anton_circle.jpg
Anton Lucian
Raised in the U.S, Lucian graduated with a BA in economic history. An accomplished freelance journalist, he specializes in writing about the cryptocurrency space and the digital '4th industrial revolution' we find ourselves in.
READ FULL BIO
Sponsored
Sponsored