Binance USD (BUSD) Now Available on Alavanche and Polygon

• Cryptocurrency exchange Binance has made its stablecoin Binance USD available on Alavanche and Polygon
• The BUSD is issued by Binance and regulated by the New York State Department of Financial Services (NYDFS).

So far the token BUSD had been available on the second biggest cryptocurrency, Ethereum and BNB Chain. Binance has now expanded and made its stablecoin Binance USD available on Alavanche and Polygon. Avalanche is an advanced blockchain platform with scaling capabilities and is used for building decentralized applications. It allows anyone to easily make their decentralized applications (dApps) and multi-functional blockchains.

Currently, the Binance USD has a market cap 0f $20 Billion placing it as the 6th largest cryptocurrency, while the price of one BUSD is at $0.99 after reaching an all-time high of $1.11. There are a total of 20,517,253,085 BUSD in circulation which is also the current maximum supply. The maximum supply is likely to go up due to the addition of alavanche and polygon.

Stablecoin; is a cryptocurrency whose value is tied to the price of another currency/asset. Eg; US Dollar.

There are 4 primary stablecoins;

• Fiat Backed– a stablecoin backed by a reserve of fiat currencies in regulated institutions like banks. They have an advantage over the other stablecoin types by the fact that they are backed by actual fiat currencies.
• Crypto-backed– stablecoins backed by another cryptocurrency and use smart contracts to secure assets as collateral.
• Algorithmic stablecoins – algorithmic stablecoins use algorithms or smart contracts for managing the circulating supply of the stablecoin according to the market conditions. Eg; the smart contract would reduce circulating supply when the price of the stablecoin drops, then this would increase the scarcity of the stablecoin and drive an increase in its value.
• Commodity Backed– these are stablecoins that are collateralized using physical assets such as precious metals, oil, and real estate. The most popular commodity to be collateralized is gold.

Each unit of the Binance BUSD is backed by one dollar making it a fiat-backed stablecoin. Investors, traders, and crypto users often transact with stablecoins like BUSD to ensure security against the volatility in crypto markets.

Ethereum recently underwent the merge converting the network to proof of stake and making it lower its consumption of energy. However, Avalanche and Polygon remain significantly cheaper and faster.