FTX CEO Sam Bankman-Fried has a prediction for the crypto markets as he says a “stablecoin war” is starting to unfold.
The billionaire says crypto exchange Binance’s recent conversion of Circle’s USD Coin (USDC) to its own Binance USD (BUSD) signaled a new battle between the top stablecoins in the industry.
“Binance converts USDC –> BUSD, and we see the change in supplies.
Thus begins the Second Great Stablecoin War. (The first one, fought in ~2018, ended with USDC and USDT edging out TUSD/GUSD/USDP.)”
BUSD has been exploding in market cap for nearly two years, recently cracking the $20 billion level for the first time this month shortly after Binance ditched USDC and several other stablecoins.
With Terra’s algorithmic stablecoin UST collapsing in May, and stablecoin DAI planning to eventually get rid of USDC from its reserves, Bankman-Fried predicts that a new stablecoin will arise. According to the CEO, the next big stablecoin could be something that produces some sort of monetary benefits to its holders.
“Finally – it’ll be interesting to see what emerges from the non-fiat-backed-stablecoin space, post-Luna and post-DAI-holding-USDC.
My guess is that it will be something interest bearing or otherwise with some upside.”
The FTX chief notes that the exchange he heads is likely the largest player left not to have its own stablecoin, along with Bybit and traditional finance entities.
At time of writing, Tether’s USDT is the largest stablecoin, followed by USDC and then BUSD.
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