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Binance Faces SEC Lawsuit: Crypto Giant Caught In Regulatory Storm

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In a surprising update, the United States Securities and Exchange Commission (SEC) has accused Binance, a popular cryptocurrency exchange, and its affiliated companies of facilitating trading for several tokens that are considered securities. 

The tokens mentioned in the SEC’s report include BNB, BUSD, SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS, and COTI. Additionally, the exchange has been accused of providing coin-earning programs such as BNB Vault and Simple Earn, as well as a staking investment plan. The SEC also alleges that the exchange intentionally evaded supervision by US authorities.

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It’s worth noting that the SEC’s list of securities is not exhaustive and may include other tokens as well. However, tokens with significant trading volumes, such as ETH, USDC, USDT, and LTC, are conspicuously absent from the list. 

This development follows previous statements by the chairman of the SEC, suggesting that cryptocurrencies, apart from Bitcoin, might possess securities attributes.

Bloomberg has reported that the SEC has filed a lawsuit against Binance and its CEO, Changpeng Zhao, for violating US securities regulations. 

Earlier, the Commodities Futures Trading Commission (CFTC) sued the exchange and Zhao for allegedly breaking US derivatives rules. Speculation is now rife that it may consider replacing its CEO in response to these legal challenges.

Binance CEO Responds To SEC’s Accusations

In response to the allegations, Changpeng Zhao assured users that Binance’s systems, including withdrawals and deposits, remain stable. He also mentioned that the company had not yet seen the complaint and that the media was privy to the information before them.

Binance released a blog post expressing disappointment in the SEC’s decision to file a complaint, particularly seeking emergency relief. The exchange claims to have actively cooperated with the SEC’s investigations, engaging in extensive discussions to reach a settlement.

However, the SEC has chosen to litigate unilaterally, and Binance intends to mount a vigorous defense. The exchange argues that the SEC’s actions undermine America’s position as a global hub for financial innovation and leadership. 

The exchange insists that user assets on the platform, including Binance.US, are safe and secure, refuting any claims to the contrary. The exchange views the SEC’s actions as an attempt to assert jurisdiction over other regulators and accuses the commission of prioritizing headlines over investor protection.

While the SEC’s actions may have limited reach due to its status as a non-US exchange, the company stands in solidarity with digital asset market participants in the US, vowing to fight the SEC’s alleged overreach. 

Nevertheless, Binance is committed to cooperating with regulators worldwide and fostering innovation while ensuring consumer protection in the evolving landscape of cryptocurrency regulation.

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Bitcoin Ownership Unveiled: Exchanges Battle, US Entities Retreat, Asian Traders Thrive

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In a latest update from cryptocurrency data provider Glassnode, some fascinating trends have emerged regarding the total amount of Bitcoin held on the top three exchanges over the past three years. 

According to a tweet by Glassnode, there has been substantial growth in BTC holdings on Binance and Bitfinex, while Coinbase seems to have experienced a decline.

Binance, one of the leading cryptocurrency exchanges, has witnessed a remarkable surge in BTC holdings, with a staggering 421,000 BTC increase. It brings their total holdings to an impressive 703,000 BTC. Such exponential growth demonstrates Binance’s prominence in the crypto market and its appeal to Bitcoin investors.

Similarly, Bitfinex, another prominent exchange platform, has also experienced significant growth. Their BTC holdings have surged by an impressive 250,000 BTC, raising their total holdings to 320,000 BTC. This growth further solidifies Bitfinex’s position as a go-to exchange for Bitcoin enthusiasts.

However, the news from Coinbase is not as positive. The popular exchange has seen a decline in its holdings, with a substantial decrease of 558,000 BTC. As a result, its total holdings now stand at 462,000 BTC. 

This decline is noteworthy, considering Coinbase’s reputation as one of the leading exchanges in the cryptocurrency world.

These developments shed light on the evolving dynamics of the crypto market, emphasizing the competition among exchanges to attract and retain BTC investors. These figures highlight the changes in Bitcoin ownership and serve as a barometer for market trends and investor sentiment.

Bitcoin Ownership Shifts: US Entities Decrease, Asian Traders Gain

Meanwhile, in another tweet, Glassnode revealed that the dominance of Bitcoin supply had undergone a remarkable transformation in the past two years. This shift in ownership patterns has far-reaching implications for the cryptocurrency market, particularly in relation to the behavior of US entities and Asian traders.

According to the report, US entities currently hold approximately 11% less Bitcoin than in June 2022. This staggering reduction in Bitcoin holdings signifies a significant departure from the trends observed during the previous bull cycle that spanned the years 2020 and 2021. 

On the other hand, investors actively participating in Asian trading hours have witnessed a substantial increase in their Bitcoin holdings, with an impressive gain of 9.9%.

In addition to redistributing Bitcoin, the Glassnode report also sheds light on the evolving landscape of stablecoins. Notably, the Tether (USDT) supply has reached all-time highs, indicating a surge in demand for this particular stablecoin. 

Conversely, other stablecoins such as USD Coin (USDC) and Binance USD (BUSD) have experienced a decline in supply, plummeting to multi-year lows.

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This changing dynamic may influence capital and investment strategies to flow as market participants adapt to evolving regulatory landscapes and seek alternatives to traditional stablecoin offerings.

Examining cryptocurrency exchanges’ on-chain flows further highlights the market’s shifting tides. Starting from April, a notable decline in demand has been observed. During the first quarter, the massive inflow of stablecoins effectively balanced out the inflows of Bitcoin and Ethereum. 

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However, as the market experiences a correction and prices decline, a reversal in this trend becomes apparent. Larger inflows of Bitcoin and Ethereum assumed to be sell-side transactions, are now outweighing the influx of stablecoins.

Nevertheless, the latest report from Glassnode paints a vivid picture of the ongoing shifts in Bitcoin ownership, stablecoin dynamics, and on-chain flows within the cryptocurrency market. 

However, as the market corrects itself, the interplay between Bitcoin, Ethereum, and stablecoins will undoubtedly shape the future trajectory of the cryptocurrency landscape.

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Ethereum Surge: Dominating Q1 With $457M Revenue, Outshining L1 Rivals 2.8x

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Ethereum, the leading smart-contract platform, has emerged as the top revenue generator in the first quarter of 2023, outperforming all other Layer-1 (L1) platforms.

According to a report released by Messari titled “State of L1s Q1 2023,” Ethereum’s revenue reached an impressive $457 million, nearly 2.8 times higher than the combined revenue of all other featured L1 platforms.

Despite an overall rebound in the crypto market during Q1, network usage did not experience a corresponding surge. While the featured L1 platforms witnessed an average quarter-on-quarter (QoQ) increase of 83% in market capitalization, network usage actually decreased by around 2.5%.

Among the L1 platforms, Stacks stood out by outperforming its peers in various metrics. This can be attributed to renewed interest in Bitcoin programmability by Ordinals. 

Stacks led the featured L1s in QoQ growth in market capitalization (340%), revenue (218%), network usage (~35%), DeFi TVL (276%), and DEX volume (330%).

Despite Stacks’ strong performance, ETH maintained its leadership position in key financial and ecosystem metrics. It remained the leader in market capitalization, revenue, DeFi Total Value Locked (TVL), volume, NFT volume, and full-time developers.

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The report also highlighted shifts in stablecoin dominance, as USDC experienced a temporary depeg and Paxos ceased BUSD issuance. This resulted in stablecoin market cap dominance shifting toward USDT, benefiting TRON. 

TRON’s stablecoin market cap increased by 30% QoQ to reach $43.6 billion, while other featured L1 platforms with significant stablecoin market caps saw a decrease in their figures.

The Messari report provides a comprehensive overview and comparison of the financial, network, and ecosystem analyses of 14 L1 smart-contract platforms, including Avalanche, BNB Chain, Cardano, Ethereum, Harmony, Hedera, NEAR, Polkadot, Polygon, Solana, Stacks, Tezos, TRON, and WAX.

In terms of validators, all networks experienced a QoQ increase in total staked tokens denominated in USD, as expected during a market uptick. Stacks (403%) and Solana (125%) led the way in QoQ growth.

Ethereum maintained the largest security budget, with $32.6 billion in ETH staked, surpassing other networks by over $20 billion.

Ethereum Remains the Top Destination for NFT Activity

When it comes to NFTs, Ethereum continues to dominate despite higher gas fees. The report highlights Blur as the dominant ETH marketplace in terms of volume, with its average weekly share increasing from 31% to 59% QoQ. Only Polygon outperformed ETH in terms of QoQ average daily volume, showing a 101% increase.

Furthermore, Ethereum leads in daily unique NFT buyers, although the gap between ETH and other chains is smaller in this metric than in volume. 

Coinbase’s commemorative NFT launch on Ethereum attracted over 122,000 unique buyers. Polygon experienced the highest QoQ growth in average daily unique buyers, increasing by 89%.

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Ethereum Surge: Dominating Q1 With $457M Revenue, Outshining L1 Rivals 2.8x 6

Tezos also saw an increase in unique NFT buyers, surpassing 10,000 on average in the week following the launch of the free McLaren F1 collection.

However, Ethereum’s strong revenue generation, market leadership, and continued dominance in NFTs reaffirm its position as a major player in the blockchain and cryptocurrency space. 

As the industry evolves, it will be interesting to observe how other L1 platforms adapt and compete with Ethereum’s established ecosystem.

Related Reading | Ethereum’s Gas Fees And Supply On Exchanges Hit Historic Low 

TRON Celebrates 5-Year Anniversary; All Set For Hong Kong Expansion

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TRON [TRX] mainnet celebrated its fifth anniversary with close to 160 million users since its launch in 2018. The leading public chain has so far processed over 5 billion transactions.

It also outshined the altcoin pack with a TVL [Total Value Locked] of $5.76 billion, trailing behind Ethereum.

In addition, it is anticipating the launch of the Hong Kong retail crypto trading platform which is scheduled to be on June 1 in accordance with the press release.

Following TRON’s anniversary, Hong Kong’s Securities and Futures Commission [SFC] will begin accepting applications for crypto trading platform licenses on June 1. As a top-tier public chain with a Chinese background, we promised full support for Hong Kong’s efforts to develop Web 3.0.

The statistics on Tether’s website showed that the amount of TRC20-USDT in circulation has surpassed 46.1 billion, much exceeding the amount of ERC20-USDT [36 billion], and making over 60% of the total supply of USDT.

Meanwhile, the TRON team is also working towards building a diversified stablecoin network and a sounder public chain ecosystem for users through its sustained efforts to grow the business of USDC, TUSD, USDD, and USDJ, among other stablecoins.

The TRON blockchain, led by crypto entrepreneur Justin Sun, seeks to increase its on-chain stablecoin market cap to $100 billion in 2023 and aspires to become the stablecoin users’ first option by promoting itself as “a more accessible and user-friendly version of Ethereum.”

“Against the ever-fiercer competition among public chains around the world, it has stood out with its second-to-none performance, scalability, and security, attracting masses of developers and users worldwide,” it added.

TRON was in the limelight recently after a security flaw was made public by the researchers at dWallet Labs.

TRON’s Major Security Risk Averted

In a tweet, dWallet Labs stated that they spotted a zero-day vulnerability in Tron multisig accounts, allowing an attacker to avoid the multisignature system and sign transactions with a single signature.

If left unfixed, the vulnerability might have risk $500 million worth of funds housed in Tron multisig accounts. This is due to the fact that it enables anyone to “completely overcome the multisig security offered by TRON.”

The solution, according to dWallet Labs CEO Omer Sadika, is straightforward: validate the address rather than the number of signatures. The issue was reported to the blockchain’s team in February and resolved a few days later, the researchers stated.

Ethereum’s Empowering Reign: ‘Bitcoin Jesus’ Positions It as the Pioneering Force in Global Crypto Adoption

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During a recent episode of the Show Me The Crypto podcast, Roger Ver, a well-known investor and advocate of Bitcoin Cash (BCH), expressed his belief that Ethereum, not Bitcoin, will attract the majority of new users to the world of cryptocurrencies. Despite acknowledging Ethereum’s scalability challenges and the emergence of similar layer-one platforms, Ver emphasized that the Ethereum ecosystem remains the most active and influential:

“Despite not having the largest market capitalization compared to Bitcoin, I firmly believe that Ethereum is leading the way in driving global adoption.”

Ver commended the growing prominence of Ethereum Virtual Machine-compatible (EVM) blockchains and layer-2 scaling solutions like Polygon (MATIC) that offer effective mechanisms for alleviating the burden on the Ethereum main chain. These developments enable the distribution of workload, reducing strain and enhancing the overall scalability of the Ethereum network.

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Roger Ver’s Insights: Ethereum’s Rise to Prominence

Ver recounts the historical “civil war” that unfolded during the early stages of Bitcoin, involving a conflict between Vitalik Buterin, co-founder of Ethereum, and the core developers of Bitcoin.

According to Ver, disagreements regarding the utilization of smart contracts and the divergence from the notion of blockchains solely serving as currency or stores of value ultimately led Vitalik Buterin to develop Ethereum. Ver highlighted that if not for the scaling dispute within Bitcoin, all those advancements would have been integrated into the Bitcoin network.

However, due to what Ver described as animosity from Bitcoin core developers towards Buterin, he was compelled to create Ethereum, a decision that Ver commended. Ver also expressed his disappointment with the controversial Ledger Recover service during the discussion. The service allows users to store their encrypted seed phrases with external custodians to mitigate the risk of loss.

While Ver acknowledged that it’s acceptable for individuals to opt for custodial accounts and key recovery, he emphasized that the core ethos of cryptocurrencies revolves around maintaining complete control over one’s assets at all times.

In January, Roger Ver faced a lawsuit filed by a trading unit of Genesis, a crypto lending company, for his alleged failure to settle approximately $20.8 million in unresolved cryptocurrency options. Ver asserted in a Reddit post during that time that he possessed enough funds to cover the outstanding amount. However, he argued that since Genesis was no longer financially solvent, he was not obligated to fulfill his part of the agreement from a legal standpoint.

In the previous year, Roger Ver attracted attention due to accusations of failing to fulfill a debt. Mark Lamb, the CEO of CoinFLEX, asserted that Ver owed the company $47 million in USD Coin (USDC) and cited a written contract to support the claim. However, on June 28, Ver refuted these allegations without explicitly mentioning CoinFLEX.

Shiba Inu Investor’s Windfall: $30k Blossoms into a Whopping $450K with Early Bets

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In the volatile world of cryptocurrency, where wealth can be gained or lost in an instant, a trader specializing in Shiba Inu (SHIB) has achieved a remarkable feat. With an initial investment of $30,000 and an astute approach to trading multiple tokens, this trader has transformed their modest sum into an astonishing $450,000 over a period of three years.

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Shiba Inu Investor's Windfall: $30k Blossoms into a Whopping $450K with Early Bets 8

As per information provided by OnChainDataNerd, a reputable crypto market tracking platform, this trader, known as the Meme Lord, exhibited an exceptional talent for recognizing and capitalizing on lucrative tokens, resulting in significant profits.

Although the Meme Lord has already made some withdrawals, their investment journey provides valuable lessons regarding their strategies. Notably, the trader achieved remarkable success through investments in three specific projects: Shiba Inu (SHIB), Pepe Coin (PEPE), and TSUKA.

In March 2021, the trader allocated $2,500 worth of Ethereum (ETH) to invest in Shiba Inu. Recognizing a favorable moment around the peak in May, the trader made the decision to sell their investment. Although the timing of the exit may not have been flawless in hindsight, the trader still achieved an impressive profit of 22 times their initial investment, totaling $60,000.

Likewise, the trader engaged in the PEPE market on April 17 and made a modest profit on May 5 following the token’s listing on Binance, the prominent cryptocurrency exchange. By holding onto 14 billion PEPE, the trader successfully obtained a profit of 14 times their initial investment, resulting in an impressive gain of $70,000.

However, the trader’s most significant profit came from investing in TSUKA. It all started with a modest purchase of $300 USDC in May 2022, which ultimately resulted in an astonishing 1000-fold return, amounting to a staggering gain of $250,000.

Recent headlines have highlighted similar cases of traders achieving remarkable profits. Just last week, The Crypto Basic reported on another SHIB trader who strategically made trades throughout 2021, resulting in an impressive 200% return on investment. This trader had acquired over 900 billion Shiba Inu tokens at low prices and sold them during a period of peak performance, capitalizing on the opportunity.

Avalanche’s Price Battles Bearish Momentum Amidst Encouraging Network Developments

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Avalanche (AVAX), the 17th-ranked cryptocurrency in the market, valiantly countered the recent bearish trend in recent days. In just one week, AVAX experienced a decline from $15.28 to a daily low of $14.03 yesterday. 

However, hope is on the horizon as the network displays promising signs with a series of recent developments, which could potentially lead to a price surge in the coming days.

Currently, AVAX is trading at $14.17, with a slight increase of about 0.16% in the daily chart and a 2.93% dip in the weekly chart. The trading volume is also down in the last 24 hours.

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Source: CoinMarketcap

According to data obtained from PricePredictions, a prominent site known for its accurate cryptocurrency forecasts, technical analysis of AVAX indicates a bullish trend in the long term. 

Based on this analysis, experts predict that the price will witness an increase of $0.00389 over the next seven days, reaching an estimated value of $14.23 by the 1st of June 2023.

In the short term, a machine learning algorithm has identified a bullish trend for AVAX. It suggests that investors should anticipate a slight increase in value over the next few hours. It’s a positive signal for those who have invested in Avalanche and are closely monitoring its performance.

However, the battle against the bearish trend by Avalanche brings a glimmer of hope for enthusiasts and stakeholders alike as they await the potential recovery in the days to come.

Avalanche Network Developments

Avalanche made a significant announcement today on Twitter, revealing the introduction of AvaCloud, a Web3 Launchpad, by Avalabs official. The tweet stated that launching your own Subnet has become even more convenient with this new platform. 

AvaCloud aims to assist various entities, including large consumer enterprises, AAA games, and Web3 startups, in expediting the process from concept to launch while reducing expenses.

Meanwhile, Global digital financial technology firm Circle has launched Euro Coin on Avalanche, marking the first in a series of multi-chain launches for the euro-backed stablecoin. The move aims to enhance payment efficiency and financial services for developers and users. 

By introducing Euro Coin to Avalanche, Circle aims to boost euro liquidity and offer global users the option to transact in euros with Euro Coin and in U.S. dollars with USDC. The integration is seamless for Avalanche developers already supporting USDC, as the two stablecoins share similar smart contract designs. 

However, the launch of Avalanche’s platform allows for near-instant and cost-effective financial transactions, expanding possibilities for payments, remittances, and foreign exchange. Circle Account holders can access Euro Coin liquidity on Avalanche for trading, lending, custody, and payments. 

As per the announcement, Leading apps and wallets, including Coinbase Wallet, MetaMask, and Trader Joe, will support Euro Coin on Avalanche, while developers can integrate with the Euro Coin smart contract to tap into growing liquidity.

Related Reading | Uniswap Eyes Fantom Blockchain: Unlocking New Horizons In DeFi Expansion

Ethereum Burning: April Sets New Records With 108,140 Burns, Uniswap Leads The Charge

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According to a research report by Coingecko, the latest findings reveal the protocol that burned the most Ethereum as of April 2023. Topping the list is Uniswap, which has remained the largest contributor to ETH burning, with a total of 29,333.8 ether burned thus far.

In terms of overall ETH burning, April 2023 witnessed a significant milestone, totaling 108,140 ETH burned. It marked the highest monthly figure since June 2022, when 122,074 Ethereum were burned.

It represents a notable 17.5% month-on-month (MoM) growth compared to March 2023, which recorded 92,057 ether burned. Furthermore, the first quarter of 2023 saw a remarkable 242,001 ETH burned, reflecting a substantial 50.9% quarter-on-quarter (QoQ) growth from the previous quarter.

The trend of Ethereum burning has displayed steady and consistent growth, with an average monthly growth rate of 4.1% over the past twelve months. Interestingly, the burning rate has surpassed the creation rate, indicating a net burn of 9,643 ether in April 2023, while 98,497 ether were minted.

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This trend first emerged six months after the successful Merge upgrade, with October 2022 being the month when net burn turned positive, amounting to 4,765 ether.

Uniswap & XEN Dominate Ethereum Burning Scene

Uniswap, the leading protocol in ETH burning, witnessed a substantial increase in burned ETH. In April 2023 alone, Uniswap burned 21,479.9 ether, a 100% surge compared to March 2023, which saw 10,726.8 ETH burned. This increase can be attributed to the growing popularity of meme-coins being traded on the platform.

Following Uniswap, the protocol with the second-highest total burn was XEN, which burned 4,738.4 ether in April 2023. It represents a staggering 987% month-on-month growth, considering XEN burned only 435 ether in March 2023. The surge in burned ETH for XEN can be attributed to the resurgence in the token’s popularity.

Other notable protocols contributing to ETH burning include USDT, which burned 4,497.0 ETH, and Blur.io, which burned 2,452.2 ETH. The remaining protocols in the top eight burned less than 2,000 ETH each. MetaMask burned 1,982.8 ETH, followed by 1 inch with 1,484.6 ETH, USDC with 1,149.5 ETH, and OpenSea with 13.2 ETH.

The research report relied on data from Dune Analytics, covering the period from January 1, 2022, to April 30, 2023. The study examined the total Ethereum (ETH) minted and burned during this time. 

Additionally, the report highlighted the top nine methods responsible for burning the most ETH, which are ETH Transfers, Uniswap, XEN, USDT, Blur.io, MetaMask, 1inch, USDC, and OpenSea.

Related Reading | Coinbase Exchange Base L2 Unveils Criteria For Mainnet Launch, Prioritizing Safety And Security

OKX Empowers HK Retail Investors: Unveiling Access To 16 Prominent Crypto Assets

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OKX, the world’s second-largest crypto exchange, has announced the availability of listed tokens for retail investors in Hong Kong. The exchange now allows Hong Kong users to buy, sell, and convert 16 major virtual assets through their app.

The listed tokens include popular cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), Polygon (MATIC), Solana (SOL), Polkadot (DOT), Uniswap (UNI), Chainlink (LINK), The Sandbox (SAND), Litecoin (LTC), Avalanche (AVAX), Axie Infinity (AXS), Cosmos (ATOM), Stellar (XLM), and stablecoins USDT and USDC.

The OKX app provides multiple options for purchasing tokens. Users can buy them with Hong Kong dollars (HKD), engage in peer-to-peer (P2P) transactions, or use ApplePay, Visa, and Mastercard through third-party providers. 

To meet the requirements set by Hong Kong’s regulatory framework, tokens listed on OKX must meet the criteria of the two cryptocurrency indexes launched by traditional financial institutions and have existed for at least 12 months.

Interestingly, BCH (Bitcoin Cash) is the only token included in the traditional entry index but is not listed on OKX HK. AXS (Axie Infinity) and SAND (The Sandbox) have gained attention within the industry, possibly due to the government support that Animoca, the parent company of these projects, receives in Hong Kong.

OKX Aims To Support Hong Kong’s Crypto Policy Goals

OKX has made significant efforts to ensure the security and compliance of its app. The company stands out among major crypto exchanges by publishing its monthly Proof of Reserves, which showcases its crypto holdings. 

Furthermore, the company is actively collaborating with Hong Kong authorities to demonstrate its security, custody, anti-money laundering (AML), and compliance capabilities.

Lennix Lai, OKX Global Chief Commercial Officer, emphasized the commitment of the exchange to provide a secure and user-friendly crypto trading experience for everyone in Hong Kong. 

Lai added:

We will continue to collaborate with Hong Kong regulators in the process of our licensing efforts under the new VASP regime and invest in making this city a resurgent digital assets hub in support of the government’s policy goals.

In the future, the exchange plans to release additional features to enhance further and diversify the user experience, following guidance from the Hong Kong Securities & Futures Commission.

Related Reading |  Coinbase Exchange Base L2 Unveils Criteria For Mainnet Launch, Prioritizing Safety And Security 

Tether’s Market Cap Surge Is Puzzling-Kaiko

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While the daily volume of Tether’s USDT fell to multi-year lows over the weekend, the market valuation of the stablecoin is currently at an all-time high of $82.9 billion.

According to crypto market research firm Kaiko, since stablecoins’ primary use is for trading, the unprecedented surge in USDT’s market cap is “questionable” given that the token’s use plummeted.

“Typically, changes in trade volume have been loosely correlated with changes in Tether’s market cap, with occasional surges during periods of notable market activity. Today, the correlation is at zero,” Kaiko noted.

Stablecoins whose value is tied to the fiat currencies like the dollar are primarily used as a somewhat secure “parking space” for crypto volatility and as a bridge to trade cryptocurrencies.

USDT, issued by Tether, and USDC managed by the Centre consortium are the two most widely used stablecoins measured by market cap and trading volume.

At present, Tether accounts for over 50% of all trades on centralized exchanges. On DEXs, USDC remains the dominant stablecoin.

Just 20% of non-stablecoin swap volume on DEXs is represented by USDT; while this is an increase from the beginning of the year, it is not necessarily sufficient to account for the more than $15 billion gain in market size during the same period.

One possible explanation behind Tether’s rise in market cap could be the impending demise of BUSD together with USDC’s March de-pegging event.

Based on a previous coverage by TronWeekly, the market value of Circle’s USDC depreciated in late March when the company disclosed that beleaguered Silicon Valley Bank [SVB] owned $3.3 billion of the reserves that were utilized to support it.

Even though investors flocked toward its rival, Kaiko pointed out that the “increase seems inordinate” particularly when compared to other stablecoins over the previous few months. This is mostly because Binance promoted TUSD as a substitute for BUSD.

Tether’s USDT Issued Mostly On TRON Network

Next, the research platform took note of how the majority of USDT tokens are issued on the TRON blockchain, especially on offshore exchanges like Binance and OKX.

Although TRON’s DeFi activity is negligible compared to Ethereum’s, it may indicate that market makers and whales favor this network due to its low transaction fees.

With USDC, the relationship between transaction volume and market cap was found to have a “clean correlation.”

“Overall, USDT’s market cap has little correlation with trade volume, which is questionable considering the primary use case for this stablecoin is trading,” Kaiko added.