• The number of active addresses holding GUSD has returned to 2020 levels, while BUSD volume on exchanges has shrunk by 96% in the last seven months.
• Glassnode data analyzed by CryptoSlate shows that the U.S.-based crypto exchange Gemini and its stablecoin Gemini Dollar (GUSD) are starting to lose followers and the community’s trust as metrics fall to all-time lows.
• The BUSD volume on exchanges started to grow exponentially in July 2021 and breached 300 million in May 2022, just before the FTX collapse.
The U.S.-based crypto exchange Gemini and its stablecoin Gemini Dollar (GUSD) are seeing a decline in their metrics, according to recent data analyzed by CryptoSlate. The number of active addresses that hold GUSD has slumped back to its 2020 levels, while BUSD volume on exchanges has shrunk by 96% in the last seven months.
Glassnode data has revealed that the number of active wallets that hold GUSD started to increase at the end of 2020 and reached almost 1200 towards the end of 2021. Since then, active addresses that hold GUSD fell by 91.6% and retreated back to 100 in January 2023. This suggests that the community’s trust in Gemini and its stablecoin is waning.
Similarly, the BUSD balance held on exchanges has also recorded a significant decrease. The BUSD volume on exchanges started to grow exponentially in July 2021 and breached 300 million in May 2022, just before the FTX collapse. However, the BUSD volume started to record ups and downs after the FTX disaster and finally recorded a 96% decrease in January 2023, falling from around 260 million to just above 10 million.
The name Gemini has been on the headlines since the Terra-Luna collapse, which may be the cause of the current decline in metrics. In September of 2021, the U.S. Commodity Futures Trading Commission (CFTC) charged the two main companies behind the Terra-Luna project, Tether and Bitfinex, with fraud and misappropriation of over $2 billion of customer funds. Since then, the crypto community has been wary of any associations that Gemini has had with Tether or Bitfinex.
Since the CFTC’s charges against Tether and Bitfinex, Gemini and its stablecoin GUSD have been losing followers and the community’s trust. The current decline in metrics may be an indication of this. It remains to be seen whether the crypto exchange and its stablecoin will be able to recover from this dip in their metrics.
