BUSD Surpasses USDC in TRV for February 2022

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Unit­ed States Dol­lar Coin (USDC) took a back­seat in real vol­ume (TRV) dur­ing Feb­ru­ary as Binance Unit­ed States Dol­lar (BUSD) saw a 51% increase in real vol­ume over USDC.

Feb­ru­ary proved to be a dif­fi­cult month for USDC, bring­ing in approx­i­mate­ly $49 bil­lion in real vol­ume, accord­ing to Be[In]Research. While the fig­ure is rel­a­tive­ly large, com­pared to oth­er sta­ble­coins, the TRV for USDC and BUSD was down $1.2 tril­lion – a stag­ger­ing 90% decrease in TRV com­pared to Jan­u­ary 2021’s figures.

USDC still on the rise

The decrease in real vol­ume over the last month would have had lit­tle effect on the demand for sta­ble­coins. Since Feb­ru­ary of last year, USDC’s TRV was up 23%, sit­ting at approx­i­mate­ly $39.7 billion.

Source: Mes­sari

USDC’s single-day high plummeted by $611 billion

In addi­tion to USDC’s increas­ing TRV, its sin­gle-day high was still 11% high­er than its high­est day in February.

As of last month, the sin­gle-day high rest­ed at $3.7 bil­lion in TRV, com­pared to $3.3 bil­lion in Feb­ru­ary 2021.

BUSD outpaces USDC

While USDC man­aged $49 bil­lion in Feb­ru­ary vol­ume, Binance USD (BUSD) man­aged to record approx­i­mate­ly $74 billion. 

In con­trast­ing for­tunes to USDC, the TRV decreased by 89% from Jan­u­ary 2022, with BUSD sit­ting at $682 bil­lion. Its TRV also saw a year-on-year month­ly decrease for Feb­ru­ary, com­pared to February’s $99 bil­lion last year – a 25% decrease.

Source: Mes­sari

Do traders prefer BUSD?

Teth­er (USDT) remains the top sta­ble­coin by mar­ket cap­i­tal­iza­tion, hold­ing the title as the sec­ond-largest sta­ble­coin by mar­ket cap as of press time. How­ev­er, as of Feb­ru­ary, BUSD seems to be the clear favorite after USDT – at least by TRV metrics.

In Jan­u­ary, USDC expe­ri­enced a 0.91% increase over BUSD, hav­ing 51% more real vol­ume than USDC. 

But why?

Trans­ac­tion counts and aver­age trans­ac­tion­al vol­ume can be cred­it­ed as the key attrib­ut­es for the con­trast­ing for­tunes in real vol­umes, accord­ing to Be[In]Crypto Research. Based on cal­cu­la­tions, the total trans­ac­tion count for USDC for Feb­ru­ary 2022 was more than 1.1 mil­lion, while BUSD had over 22,000 transactions. 

If the trans­ac­tion count for USDC is more than BUSD, then why is BUSD’s real vol­ume 51% greater than USDC? 

Although USDC record­ed 4,900% more in total trans­ac­tion counts in Feb­ru­ary than BUSD, their aver­age trans­ac­tion val­ue was rel­a­tive­ly lower. 

Look­ing back to Feb­ru­ary 24, both sta­ble­coins record­ed sin­gle-day high trans­ac­tion counts, which coin­cid­ed with Rus­sia decid­ing to con­duct an unpro­voked inva­sion of Ukraine that same day, lead­ing to a plunge in the price of cryp­to everywhere.

The bear­ish out­look of the mar­ket led to a spike in the demand for sta­ble­coins. By the end of the day, the trans­ac­tion count for USDC and BUSD was 74,568 and 1,388, respec­tive­ly. Evi­dent­ly, this yield­ed an aver­age trans­ac­tion­al val­ue of $150,000 on the day for USDC, as illus­trat­ed below. 

Source: Mes­sari

On the oth­er hand, the aver­age trans­ac­tion counts of $1.01 mil­lion for BUSD on the day.

Source: Mes­sari

Since real vol­ume con­sti­tutes the accu­mu­la­tion of dai­ly trans­ac­tion vol­umes, which brings about aver­age trans­ac­tion­al counts, this would explain why there was a decrease in real vol­ume of USDC (although it had more trans­ac­tion­al counts).

As uncer­tain­ty sur­round­ing the ongo­ing events in the Rus­sia-Ukraine con­flict con­tin­ues, March should expe­ri­ence more impres­sive TRV figures. 

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Disclaimer

All the infor­ma­tion con­tained on our web­site is pub­lished in good faith and for gen­er­al infor­ma­tion pur­pos­es only. Any action the read­er takes upon the infor­ma­tion found on our web­site is strict­ly at their own risk.

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