Coinbase revealed last month its plan to stop trading with the Binance USD (BUSD) stablecoin. This sparked investors to begin withdrawing their capital from the digital asset, leading to a decrease in its capitalization to below $10 billion for the first time since June 2021.
Whale wallets then took the majority of the funds from the stablecoin. Even before there were reports of a lawsuit against Binance, traders had started taking out BUSD tokens from the trading platform.
CryptoQuant has tracked an outflow of over $800 million of BUSD from exchange wallets on Binance in the last 30 days, plus an additional $500 million over the past 24 hours, causing its capitalization to drop to $7.713 billion.
Ho Chan Chung, head of the research division of CryptoQuant, has suggested that traders were likely reallocating capital to other stablecoins, such as TrueUSD (TUSD) and USD Coin (USDC).
