• The total value of BUSD on Binance wallets nearly doubled in ten days.
  • The increased BUSD inflow may be the evidence of the growing DeFi activity on the exchange.

Binance BUSD reserves were parked on the cryptocurrency wallets of the exchange. The coins' total value increased by $113 billion over the past week and nearly doubled in ten days, even though the BTC price remained stagnant. According to the statistical data provided by the on-chain data provider CryptoQuant, now $BUSD has the highest potential buying power over all other stable coins except for $USDT.

The amount of Binance USD(BUSD) held in Binance wallets

Source: CryptoQuant

What is BUSD

Binance USD, or BUSD, is the US Dollar-pegged stablecoin launched by one of the world's largest cryptocurrency exchanges. The project is launched in partnership with Paxos, the platform for building financial companies and moving value between supported financial assets. Binance claims that BUSD is fully backed by USD, while its exchange rate remains stable in USD terms. The New York State Department of the Financial Services approved the coin, offering BUSD-related services to NY citizens. 

BUSD total supply is 6,000,000, and it can be purchased on Binance for BTC, BNB, XRP, and other coins. Meanwhile, Paxos is responsible for minting coins and ensuring that it is fully backed by USD.

More DeFi buying ahead?

As we have previously reported, a sharp increase of stablecoins inflow to the exchange accounts might signal that traders and large investors are getting ready to add new coins to their cryptocurrency portfolios. Read more details on how Tether inflows are correlated with BTC price.

However, historically, Binance USD flows are less correlated with BTC price, meaning that some other reasons might have triggered the growth of BUSD purchase power on users' accounts. Namely, Binance has recently engaged in the wild DeFi boom and even launched its yield farming project, Binance Smart Chain. The participants can stake their BNB and BUSD to earn rewards in various DeFi coins, introduced on Binance Launchpool. 

The cryptocurrency community criticized the exchange for fuelling DeFi mania and flooding the platform with potentially risky and even fraudulent coins. However, the head of the company, Chanpeng Zhao (CZ), explained that risks and innovations had been going hand in hand. At the same time, users should do their homework themselves before they invest their money. 

Since the beginning of September, Binance has added numerous DeFi-tokens to the list of tradable instruments. BEL and WING are among the latest additions to its Launchpad. As CZ explained in the tweet, traders can use BNB and BUSD to qualify for Launchpad and also farm WING by staking them.

In this regard, the increased reserves of BUSD on the Binance cryptocurrency wallet may reflect the growing interest in Binance DeFi initiatives. More yield farmers come to plow Binance fields to get some harvest.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Ripple CEO takes the moral high ground around politics, while XRP struggles to break out

Brad Garlinghouse, Ripple CEO, has recently stated that tech companies have an obligation to solve societal problems. Garlinghouse was responding to comments made by Coinbase CEO Brian Armstrong, who caused a massive wave of criticism due to his remarks about not engaging in social and political issues. 

More Ripple News

Ethereum Price Prediction: ETH could retrace to $390 before the final rally to $500

After a massive rally towards $421, Ethereum is finally under a consolidation period. One of the largest farming pools, Harvest Finance, was hacked around eight hours ago. Attackers were able to steal close to $24 million in cryptos, making the token's price fall by more than 60% within a few hours.

More Ethereum News

Uniswap Price Prediction: UNI flashes buy signal targeting $3.3 in the short-term

Uniswap continues trading in a downtrend and inside the daily descending parallel channel. The digital asset is slowly approaching the bottom at $2.7 while bulls try to push it above the upper trendline. 

More Uniswap News

Bitcoin HODLers do not have to disclose their holdings to IRS after all

The US Internal Revenue Service explained how to answer a question about the cryptocurrency holdings, placed on the front page of the standard 1040 form.

More Crypto News


Bitcoin Weekly Forecast: Bitcoin goes up as some of the world's largest currencies go down

While investors are waiting for BTC to retest all-time highs and shoot to the moon, it is already there. In some countries, the pioneer digital asset surpassed the peak of 2017 and hit new historic highs in local currencies.

Read the weekly forecast