Everyone is watching the whales, but Binance is the big shark in the crypto ocean
For some months now DappRadar has been eluding to the fact that the biggest threat to protocols currently seeing success in the growing DeFi ecosystem have perhaps discounted one major player.
Looking at the SimilarWeb web traffic data it is clear that Binance has seen a sizable spike in users stimulated by the hype surrounding DeFi.
The growing market capitalization of Binance’s BUSD coin is a clear indicator that Binance means business. A recent report from CryptoQuant shows $113 million worth of BUSD making its way into the Binance exchange over the past 7-days.
This means that the USD stablecoin now has the highest potential buying power over all other USD-based stablecoins except for Tether (USDT).
The BUSD token was launched in 2019 in partnership with Paxos and is an ERC-20, USD-backed stablecoin. Since its launch, BUSD has steadily gained traction as its volume increased and recently surpassed that of USDC on September 4th, 2020.
“Binance has made a serious effort to enter regulated markets, and a backed stablecoin is just one example. It allows the behemoth to realize synergies between its centralized and decentralized efforts. Binance has been steadily and methodically expanding into every key facet of the industry. Everyone may be watching the whales, but Binance is the big shark in the crypto ocean.” Ilya Abugov, Lead Data Analyst, DappRadar.
Ready to pounce
Headed by charismatic CEO Changpeng ‘CZ’ Zhao and focused on rapid technological advance. Binance’s dominance of the crypto exchange market has made it one of the most powerful and profitable companies in the blockchain. Ironically too, despite its heavy focus on centralization, it’s also one of the most trusted brands in crypto.
All these facets are being combined within the Binance Smart Chain, which is the logical progression of its Binance Chain. It launched in April 2019 and is currently best known for its DEX dapp.
Binance chain allows DeFi protocols to run on top of it, with lower fees than the Ethereum blockchain and BNB staking is also available through the platform.
Recently, Binance also unveiled its Launchpool platform, a new product that allows users to farm assets such as BUSD. The first project on the platform is called the Bella protocol and users will be able to stake their BNB, BUSD, and ARPA tokens.
With a market capitalization of over $363 million BUSD is now the third-largest stablecoin in the DeFi ecosystem. Moreover, as Binance continues to add new services it is highly likely that BUSD will challenge USDTs dominance in the DeFi and stablecoin ecosystem and become a more important player overall. Only time will tell…
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