Binance USD’s (BUSD) supply declined by over 15% to $18.8 billion from $22 billion within the last 24 hours after Binance experienced a surge in withdrawals.
The withdrawals appeared to have affected BUSD’s supply as it dropped below $20 billion for the first time since climbing above it in September when Binance converted its users’ holdings in other stablecoins like USDC to BUSD.
The exchange saw the largest stablecoin outflow on Dec. 13, as over $2 billion was withdrawn in 24 hours.
USDC supply up
USDC appears to be the primary beneficiary of BUSD’s declining supply. According to CryptoSlate data, USDC’s market cap grew to as high as $45.08 billion from a low of $42.53 billion within the last 24 hours.
When Binance users request withdrawals in USDC, the exchange must convert its BUSD into the Circle-backed stablecoin to honor such requests.
Meanwhile, Tether’s USDT supply also saw its supply rise sharply to around $65.98 billion as of press time. Its market cap was largely around $65.8 billion throughout the reporting period.
Despite the spate of withdrawals, Binance remains unfazed, with CEO Changpeng ‘CZ’ Zhao saying it was a good idea to “stress test withdrawals” on centralized exchanges after the spike.