Can Binance's BUSD break the dominance of USDT and USDC in the stablecoin market? The quest for stablecoin supremacy is a constant battle, with new contenders always emerging. While USDT has long been the dominant player in the space, BUSD burst onto the scene in 2025, aiming to give its more established counterpart a run for its money. However, recent events have thrown the future of BUSD into question.

The stability of stablecoins is paramount, and any perceived risk can trigger significant market shifts. Binance processed $1 billion in withdrawals amid regulatory scrutiny on BUSD has benefited USDT in the process. This highlights the sensitivity of the market to regulatory pressure and the potential impact on market share.

Currently, BUSD dominance is only 12%, a decrease from its peak. This significant drop raises concerns about its ability to challenge the established giants, USDT and USDC. While BUSD aimed to provide a regulated and transparent alternative, regulatory hurdles appear to be hindering its progress.

USDC, another significant player, is also facing challenges. USDC, as of now, has seen a considerable drop in market share for BTC vs. stablecoin transactions, falling from 2.79% to just .5%, which shows that Binance accounted for a large share of these transactions. This illustrates the dynamic nature of the stablecoin market and the impact of individual exchanges on stablecoin usage.

Ultimately, whether BUSD can truly break USDT and USDC dominance remains uncertain. The regulatory landscape, market trust, and the actions of major players like Binance will all play crucial roles in determining the future of the stablecoin ecosystem. The battle for stablecoin supremacy is far from over.