Binance exchange has recently introduced the favorite stable coin named Binance USD. The US dollar supports this crypto, and we can observe a growing interest in buying it.
Although this market is saturating, there is a growing desire to buy this monetary unit because many exchanges support this crypto, trusts, and banks, making it charming. Would you like to find out more?
What is Binance USD (BUSD)?
It is a stablecoin backed by the US dollar, which aims to bridge the gap between traditional finance and the realm of cryptocurrencies. It is approved by the strict New York State Department of Financial Services (NYDFS).
In September 2019, the Paxos platform and Binance exchange launched this cryptocurrency in a joint effort.
This crypto is based on ERD-20, which was developed for the Ethereum blockchain; it also now transacts across the Binance BEP-2 token system.
BUSD is the 16th largest coin globally by market cap, and until writing this text valued at $14,884,459,307. You can check out the prices through valid exchange websites.
This crypto helps you trade on a blockchain platform with the most negligible price fluctuation. This decentralized financial ecosystem has made it possible to have high-speed transactions through the global network.
This crypto is one of three stable coins authorized in the USA.
The team behind BUSD?
Paxos Trust is an institution that aims to modernize financial affairs through assets mobilization with high-speed internet. It wants to create a future in which all kinds of assets, from money to securities, would continue to live digitally and work 24/7.
So, there would not be any threat to liquidation. Maybe this process help trillion dollars of trapped capitals recirculate.
Binance, as the blockchain ecosystem with several arms, is continuing to advance this technology and money freedom action. This exchange is a leading one among180 countries and enjoys a system including laboratory (for investment), Binance DEX (developed, centralized transactions within blockchain software system).
Price History of Binance USD
The price of cryptocurrency exchange Binance’s native coin grew by roughly 50 percent between September and October 2021. In early November 2021, this coin (BUSD) ranked among the world’s most traded cryptocurrencies.
From the beginning of March 2020, this monetary unit was circulating. Its supply and value in the market were estimated as 200 million dollars with a daily volume amount of 100 million dollars which, until writing this text, was among 35 top coins according to Coinmarketcap.com.
According to Binance, until 11 march 2020, more than 40 thousands of traders experience a 20-30 percent increase. From its launch, 416 million dollars of buying has registered for this coin.
One of the reasons behind this immediate increase in buying is the support of Binance. This backup led to a 182 million dollars increase in September 2019. It ranks five among stablecoins.
What to Consider When Buying Binance USD
BUSD has some features apart from similar USD stablecoins. The first strength is that it is a regulated token which complies with all the standards set out by the New York State Department of Financial Services (NYDFS). Second, it is a centralized cryptocurrency because the “Set Law Enforcement Role controls it.” The third feature is that the NYDFS audits the token to provide transparency for users.
Uses of Binance USD
As we mentioned before, this crypto is based on the Etherium blockchain. It can be traded on the Etherium network like any other RC-20 Tokens.
Many merchants use it instead of physical currencies such as the dollar. It means that users and employers can outsource their financial needs.
Comparing Binance USD with Bitcoin
Bitcoin is a kind of crypto used for paying goods and services on the blockchain platform. This cryptocurrency works online and doesn’t need any intermediaries.
Stablecoins like BUSD are priced through their connection with fiat currencies like US dollars, and their price would be consistent. In trades, they will be used as a tool against severe digital vitality. Instead, Bitcoin has a volatile value, and its price fluctuation will be measured considering many factors.
Future Status of Binance USD
As we mentioned before, the value of this stablecoin permanently is fixed equal to one US dollar. But, supply and demand changes could affect its value, especially in the countries facing decreasing value of their national currency.