The current crypto market recovery is a welcome trend for traders after a tough time for much of 2022. However, the macroeconomic scenario has yet to reflect the bullish sentiment in traditional markets. His FTX demise at the end of 2022 has taken a toll on the cryptocurrency community. On the other hand, there seems to be a shift in attitude that is currently driving the rise of altcoins.
Also Read: Metaverse Token Boom: Zilliqa Price Jumps 50%. SAND 15% up
What’s happening with BUSD?
In the context of market recovery after FTX-related liquidity concerns, on-chain data shows interesting trends in Binance’s BUSD data. Crypto Quant data shows that BUSD reserves have been declining since December 12, 2022. This decline marks the beginning of a rise in altcoin prices. Remember, a majority of investors moved their assets to his Binance exchange, fearing FTX exposure would lead to company closures. However, the situation clearly changed after a few weeks, as evidenced by the declining reserves.
“$BUSD reserves have risen significantly since FTX. Instead, it started eating away at BTC’s dominance.”
This is not particularly good for the crypto market in the medium term. Compared to previous bull markets, the current rally is not due to new inflows of capital.
Also Read: Cardano (ADA) And Solana (SOL) Lead The Altcoin Rally With 20% Profits Each
The Binance USD stablecoin has lost significant market cap over the past month. In fact, since around December 14th, BUSD’s market size curve has been on a steady downward curve. Stablecoins have lost a whopping 40% of market share from a high of around $24 billion in the immediate aftermath of the FTX meltdown.
The content presented may contain the author’s personal opinions and is subject to market conditions. Do market research before investing in cryptocurrencies. The author or publication accepts no responsibility for your personal financial loss.
