Binance USD (BUSD) Market Cap Soared More Than $400 Million in May


BUSD joined USDC as one of the few cryptocurrencies that withstood the market crash of May which led to a steep decline in prices that saw billions of dollars wiped off the market.

The token issued by Binance remains a top 10 digital asset by market capitalization in June. According to Be[In]Crypto Research, BUSD closed the fifth month of the year with a market capitalization of around $18.2 billion.

Track live crypto price of 10000+ coins!


This marked a 2% increase from the opening day’s market value. BUSD saw a trading volume in the region of $4.08 billion which corresponded to a market capitalization of approximately $17.71 billion on May 1.

Source: BUSD Historical Data from CoinMarketCap

Why the increasing market capitalization? 

The high demand for the stablecoin during the peak of the crash on May 9 to 13 can be credited for the soaring market capitalization of the token. 

The number of large transactions peaked on May 12. On that day, transactions involving BUSD were 796,000 at a price of $0.966500.

Source: May 2022 Number of Large Transactions Chart by Into the Block

This corresponded with a transaction volume of 4.33 billion tokens at the same price.

Source: May 2022 BUSD Total Volume in BUSD Chart by Into the Block

The total transaction volume of 4.33 billion BUSD multiplied by $0.966500 equals $4.18 billion.

Related:  Tornado Cash: developer arrested in Amsterdam
Source: BUSD Total Volume in USD Chart by Into the Block

On May 12, it opened at $1, reached an intraday high of $1.02, tested an intraday low of $1, and closed at $1. 

The trading volume for the day was $19.14 billion and corresponded to a market capitalization of $17.09 billion. Increased demand by traders to offset huge losses saw the token maintain its peg by the close of the month. 

BUSD price reaction 

BUSD opened on May 1, at $0.9994, reached a monthly high of $1.02 on May 12, tested a monthly low of $0.9978 on May 9, and ended the month with a trading price of $1. Overall, there was a 0.6% increase in the opening and closing price of the token in May.

Source: BUSD/USD Chart by TradingView

What do you think about this subject? Write to us and tell us!

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.


Download MAXBIT Android App, Your best source of all crypto news!

Google Play

Source link

Share this article: