Paxos Treasury destroyed 117 million BUSDs, and the market value has shrunk by more than US $1 billion in the past two days

On February 15, according to Whale Alert data, Paxos Treasury destroyed 117401943 BUSDs at 07:54:47 UTC on February 15. With the continuous destruction, the market value of BUSD has shrunk significantly in the past two days. According to the data of Coingecko, the market value of BUSD was about $16.204 billion on February 13, and it is currently about $15.203 billion, a decrease of more than $1 billion.

Interpretation of this information:

The recent destruction of BUSD by Paxos Treasury has resulted in a significant decrease in the market value of BUSD in the past two days. Whale Alert data revealed that 117401943 BUSDs were destroyed by Paxos Treasury on February 15 at 07:54:47 UTC. This continuous destruction of BUSD has caused a decline in its market value. The data from Coingecko indicates that the market value of BUSD was roughly $16.204 billion on February 13, while it has declined to approximately $15.203 billion at present, marking a downward trend of more than $1 billion.

This event could be an attempt by Paxos Treasury to stabilize BUSD’s market value, as the stablecoin is pegged to the US Dollar. The destruction of BUSD would result in a decrease in its supply, ultimately leading to an increase in its price level. As the market value of BUSD experiences a decrease, it could also imply that the demand for the stablecoin is lower than the supply available, prompting Paxos Treasury to eliminate excess BUSD supply to maintain stability.

In conclusion, the decrease in the market value of BUSD is the result of the destruction of 117401943 BUSDs by Paxos Treasury. The reason for this event is yet to be confirmed, but it could signal an attempt to maintain the stability of BUSD’s market value.