Binance USD (BUSD) Supply Plummets Over 90% to Under $2 Billion: What's Happening?
The supply of Binance’s USD (BUSD) stablecoin has declined by more than 90% to under $2 billion after peaking at an all-time of nearly $23 billion in November 2025, according to aggregate data provided by. Amid regulatory uncertainty, the Binance USD (BUSD) stablecoin has seen its supply fall drastically, declining more than 90%. Subsequently, the supply now sits at just less than $2 billion.
What's behind this dramatic drop? The crypto exchange giant Binance’s BUSD stablecoin has been experiencing a decline recently due to mismanagement issues involving the exchange’s pegged tokens. According to Binance announced that they would be phasing out BUSD.
BUSD Supply Decline: Key Factors
Several factors contribute to the dwindling supply of Binance USD (BUSD):
- Regulatory Scrutiny: Amid regulatory uncertainty, the Binance USD (BUSD) stablecoin has seen its supply fall drastically, declining more than 90%. This is a major driver behind the decrease.
- Binance's Phase-Out: Binance announced plans to discontinue support for BUSD, encouraging users to convert their holdings to other stablecoins.
- Market Capitalization Decline: The market capitalization of the Binance USD stablecoin (BUSD) has declined over the past two months.
The Numbers Don't Lie: BUSD's Shrinking Circulation
The third largest stablecoin, Binance USD (BUSD), is dwindling fast as its supply has shrunk significantly. Binance USD (BUSD), once the fourth-largest stablecoin, has dropped below $3 billion in supply and is now ranked fifth among the top stablecoins. According to CoinGecko, the circulating supply fell. The third largest stablecoin, Binnace’s BUSD, has seen its circulating supply drop by a margin of $7 billion in less than a month. The supply of Binance USD (BUSD) now sits at just $2 billion.
Impact of BUSD Supply Drop
The sharp decline in BUSD supply has implications for the broader crypto market, including:
- Reduced Liquidity: Lower BUSD supply can impact liquidity on exchanges, potentially leading to wider bid-ask spreads.
- Increased Reliance on Other Stablecoins: Traders may shift their reliance to other stablecoins like USDT and USDC.
- Market Volatility: Uncertainty surrounding BUSD could contribute to short-term market volatility.
Stay informed about the evolving situation surrounding Binance USD (BUSD) as the crypto landscape continues to adapt.