Bitcoin ($BTC) trading with $BUSD surges nearly 80% via Binance’s stablecoin conversion

The cryptocurrency ecosystem saw a market-wide selloff over the past month on macroeconomic factors that continued to weigh on risk assets, including equities. The decline was reflected in spot trading volume, which increased significantly over the past month.

According to CryptoCompare’s latest Exchange Review report, spot BTC trading in BinanceUSD ($BUSD), the stablecoin issued by leading cryptocurrency exchange Binance, surged 79.2% to 3.84 million BTC last month, benefiting from the exchange’s transition to automatic conversion of users’ USDC. USDP and TUSD to BUSD.

Source: CryptoCompare

The move is intended to “improve liquidity and capital efficiency for users,” according to Binance. The exchange will also remove and stop trading spot pairs with USDC, USDP and TUSD.

Analysts at JPMorgan have said the move will benefit Binance Tether as it will increase the cryptocurrency’s prominence in crypto trading. The investment bank noted that Tether’s market share in the stablecoin ecosystem has declined over the past 18 months, showing that its importance has waned.

CryptoCompare’s report adds that fiat trading pairs also saw an increase in BTC spot trading volume “amid weakening of multiple currencies globally,” adding that BTC spot trading in USD was up 29.5% to 1 .7 million BTC surged while traded in Australian Dollars, Euros and British Pounds, up 65.1%, 68.3% and 233%, respectively.

According to CryptoCompare, total spot trading volume in the cryptocurrency space rose 3.58% to $1.56 trillion last month, with top-tier exchanges increasing in volume by 4.48% to $1.46 trillion and lower-tier exchange volume fell 8.1% to $99.5 billion.

According to the report, Nasdaq-listed cryptocurrency exchange Coinbase’s spot trading volume fell 17.6% in September to $48.1 billion, its lowest level since January 2021.

Coinbase’s competitors Binance, OKX, and FTX all saw increases in their cash trading volume, with gains of 23.5%, 8.26%, and 5.49%, respectively. The decline came even after Coinbase rolled out changes to its fee schedule to attract more retail and institutional trading.

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