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This Indian exchange prioritises stablecoins like Binance does.

20-Sep-2022 By: Shailja Joshi
This Indian exchange

Another cryptocurrency exchange is planning to delist USDC, the second-largest stablecoin.

Top exchange Binance said earlier this month that it would stop supporting USDC transactions. All new USDC deposits will automatically convert to BUSD, Binance's own exchange token, according to the idea. Another cryptocurrency exchange has joined Binance in delisting USDC and supporting BUSD in a recent upgrade.

The Binance Effect of The Stablecoin Shuffle

Evidently, Binance wants to make BUSD a leading stablecoin by expanding its usage and circulation. However, given Binance's enormous crypto volumes, this might significantly affect USDC's chances. All deposits of the stablecoins USDC, USDP, and TUSD will be converted to BUSD on the leading exchange. In the meantime, the Indian exchange WazirX said that it had ceased accepting USDC, USDP, and TUSD deposits and had stopped supporting any new deposits.

After delisting, users' stablecoin balances will automatically convert to BUSD before October 5. Users will be able to withdraw USDC, USDP, or TUSD from their BUSD accounts after the auto-conversion at a 1:1 ratio. Due to this, it's possible that USDC's market capitalization may suffer soon.

Will USDT be deposed by USDC?

The largest stablecoin by market cap at the moment is Tether's USDT, which is valued at a total of $67.92 billion. While USDC has a $50.13 billion market cap overall. Recent growth trends suggested that USDC's market size could surpass that of USDT. The growth rates of the two cryptocurrencies were separated by a wide margin. According to the same pattern, USDC was poised to usurp USDT as early as October 2022. However, the Binance auto conversion factor can slow the rise of the USDC stablecoin. Another setback, WazirX delisting USDC, is added to this.

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