The race between stablecoin projects takes another step towards increasing competition, as the crypto exchange Huobi has manufactured a new batch of 1.3 million HUSD tokens supported by USD. Crypto exchanges like Binance and Huobi are also joining the race with their own stablecoin projects – BinanceUSD (BUSD) and HuobiUSD (HUSD).
Despite a slow start, stable coins issued by crypto exchanges are gaining in popularity, Binance increasing several times the total supply in circulation for its BUSD project in 2020 only. In early February, Binance issued five million BUSD tokens, in cooperation with PAX Treasury. Just one week after issuing 5 million BUSDs, a new batch of 10 million BUSD tokens entered circulation. However, Binance is no longer a lone warrior in the area of stable coins issued in exchange, as Huobi also turns to entering the stable coin war.
Huobi’s HUSD project was announced in late 2018 when the entire crypto industry was in a bearish state. HUSD didn’t have much success in 2019 and fell off the radar for stable users. However, now Huobi seems to relaunch the project, putting new HUSD tokens into circulation.
First, in early February, Huobi issued five million HUSD tokens, divided into three lots of approximately 1.7 million tokens per lot. Watchdog Crypto Whale Alert announced the news. The whale alert also noted that another batch of 1.3 million HUSD tokens entered circulation on February 27.
Despite the fact that Huobi and Binance are getting into the stablecoin race, Tether still dominates stablecoin transactions. Tether has $ 60 billion to $ 70 billion in daily trading volumes, while the world’s largest market-based cryptocurrency, Bitcoin, has registered $ 10 billion to $ 15 billion less in trading volumes.
One of Tether’s most important selling points is that stablecoin is mainly used to enter the crypto business and later buy leading cryptocurrencies, such as Bitcoin. Cryptography experts have linked Tether’s behavior directly to the price of Bitcoin, since Tether’s typing process has an impact on the valuation of the Bitcoin market.
The stablecoin war can also be sparked by Facebook’s plans to launch a native on social media stablecoin, backed by a basket of currencies. The Libra project, however, caused real regulatory havoc. In addition, the Telegram GRAM token would see further delays due to the prosecution of the federal case, accusing Telegram of an illegal offer of securities.
Central banks have also expressed interest in digital currency pegs, with China and Sweden moving towards the issue of central bank digital currencies (CBDCs). China, for example, wants to link its digital currency to the price of the traditional renminbi, with the intention of fully digitizing the Chinese economy.
At the same time, stable tokens and coins issued on the stock exchange marked the largest price increases since the start of 2020. The price of BitMax Token (BTMX) jumped 34.8%, while Binance Coin (BNB) succeeded to register a price increase of 31.39%. The native Huobi – HT token marked an increase of 25%.