For months now, the world’s leading exchange, Binance, has demonstrated its commitment to decentralized finance. Launching a series of products and services with which it promotes the development of DeFi. Either by listing tokens of the sector, providing funds to new decentralized finance protocols, or launching their own products. Something that can be clearly seen in the figures, where BUSD demonstrates Binance’s commitment to DeFi.
The Binance Offensive
Binance’s intentions with decentralized finance are nothing new to the crypto world. Well, since the beginning of this year, the exchange has announced that a fundamental part of its strategy is to get involved in the mass use of cryptocurrencies in the financial world. For which, since 2019 they have been investing in different DeFi projects.
However, it was not until the beginning of the DeFi fever in June that Binance began a frantic race to integrate into the sector. Releasing new features first to support decentralized finance projects. Including future contracts on DeFi tokens and strategic alliances with these protocols.
Moving on to creating their own DeFi products. Where the virtual currencies of the company, BUSD and BNB play a fundamental role. By allowing the staking of these crypto assets within the Binance Smart Chain, and therefore stimulating the development of new decentralized finance protocols within the Binance Blockchain.
The BUSD in the DeFi
This decentralized finance entry strategy appears to be generating results for Binance. Well, according to data revealed by the firm CryptoQuant, only during the last week 113 million dollars in BUSD have entered the Binance exchange platform. Which places the stablecoin as the virtual currency with the highest purchase potential within the crypto market, with the exception of Tether.
This increase in the use of BUSD would reflect the importance that the stablecoin is acquiring within the DeFi ecosystem. As new protocols allow the use of BUSD tokens for staking. In a process that has also occurred in the other stablecoins based on the US dollar.
Thus, according to Coin Metrics, just in the last two months the market capitalization of stablecoins has increased by around 100 million dollars a day. Essentially thanks to the use of them in DeFi pools, in which Tether, BUSD and other large stablecoins are quite popular among users.
Thanks to this, and with the announcement by Binance of its fund of 100 million dollars to invest in the development of DeFi protocols in the Binance Smart Chain. We can expect the use of BUSD to continue to increase. As new decentralized finance projects based on this stablecoin emerge.