Witnessing a significant plunge of over $1 billion within the last 30 days, Binance USD (BUSD) now secures the fourth spot in market capitalization among its stablecoin peers.

The stablecoin pegged to the United States dollar, BUSD, now ranks fourth in terms of market capitalization among other stablecoins. This comes in the wake of a substantial slump exceeding $1 billion over the previous 30 days, as revealed by CoinMarketCap data.

As of now, the market cap of BUSD stands at approximately $4.3 billion, marking a 29% fall from its earlier figure of $5.54 billion on May 18. The stablecoin has been on a downward trajectory since December 2022, back when it peaked at an impressive $23 billion market cap.

BUSD’s market cap downturn aligns with significant events revolving around Binance, particularly after the unexpected crash of FTX in November 2022. The hint of the U.S. Department of Justice eyeing Binance in December 2022 sparked a massive withdrawal of about $3.6 billion within a week. Market makers, including Jump Finance, orchestrated colossal redemptions of BUSD from the exchange, amounting to more than $245 million.

The partnership between Binance and Paxos Trust in September 2019 gave birth to the BUSD stablecoin. While Paxos retains the ownership and issuance rights, Binance merely licenses its brand. However, this partnership presented Paxos with a new set of challenges. In February, rumors surfaced that Paxos had received a Wells notice from the U.S. Securities and Exchange Commission, alleging BUSD as an unregistered security.

This led to the New York Department of Financial Services instructing Paxos to halt the issuance of BUSD. Combined, these incidents significantly dented BUSD’s market share, plummeting from $15.88 billion on February 12 to $8.38 billion on March 13.

Adding insult to injury, the SEC filed a lawsuit against Binance on June 5 for supposedly offering unregistered securities. The regulator brought forward 13 charges against the exchange, including unregistered offers and sales of the BNB and BUSD tokens.

The past year has seen some shifting in the dominance of U.S. dollar-pegged stablecoins. Despite most stablecoins witnessing a decline in their market caps, Tether (USDT) has managed to reach its previous peak.

Circle’s USD Coin (USDC) saw its market share fall from 34.88% in May 2022 to 23.05% in May 2023. BUSD’s share in the market also saw a substantial dip from 11.68% to 4.18% during the same timeframe, while Dai’s market share slightly dropped from 4.05% to 3.66%.

However, USDT appears to be on an upward trajectory. Its market dominance stood at an impressive 65.89% in May, marking a significant leap from 47.04% a year earlier. USDT’s market capitalization has soared to $83.1 billion, while that of USDC has fallen from a peak of $55 billion to just $29 billion.