Binance USD’s (BUSD) market cap has fallen under $10 billion for the primary time in nearly two years amid a United States regulatory crackdown on its token issuer and a deliberate delisting from a serious crypto alternate.

BUSD’s market cap has been on a steep downward trajectory since its all-time excessive market cap of $23.49 billion, which it hit on Nov. 15, just some days after the shock collapse of FTX.

As of March 3, the stablecoin’s market cap has fallen to $9.66 billion — ranges not seen since June 29, 2021.

Market cap of Binance USD (BUSD) during the last 12 months. Supply: CoinGecko.

Most just lately, BUSD has been the topic of a possible lawsuit against Paxos by america Securities Alternate Fee on Feb. 12 over a attainable violation of investor safety legal guidelines. Since then, $6.65 billion has been shaved off BUSD’s market cap.

Paxos was additionally ordered by the New York District of Monetary Companies to stop minting and issuing BUSD on Feb. 12 as nicely, which has probably contributed to the stablecoin’s market cap fall.

Earlier this week, cryptocurrency exchange Coinbase introduced that it could be delisting BUSD from its alternate on March 13 as a result of the stablecoin “now not met our itemizing requirements,” a Coinbase spokesman informed Cointelegraph.

The broader crypto market has additionally seen a fall in market cap, with many pointing to the current controversy surrounding Silvergate Bank with the late filing of its annual 10-K financial report on March 1.

Associated: Unstablecoins: Depegging, bank runs and other risks loom

Upon its launch in September 2019, the Binance-branded stablecoin rapidly surged to turn into the third-largest stablecoin, behind Tether (USDT) and USD Coin (USDC).

The stablecoin is at the moment in tenth place by way of market cap throughout all cryptocurrencies. The following crypto token on the listing is Solana (SOL), with $7.98 billion in market cap.

The biggest stablecoins by market cap. Supply: CoinMarketCap

Interestingly, Binance CEO Changpeng “CZ” Zhao stated in a Feb. 14 Twitter Spaces event that he never thought very highly of the Binance stablecoin venture, including that he thought it “could fail” when it first rolled out.

To account for the autumn in demand for BUSD, Binance just lately minted nearly $50 million worth of TrueUSD (TUSD) because the cryptocurrency alternate appears to diversify its stablecoin holdings.