• The number of active wallets holding GUSD returned to 2020 levels, while BUSD volume on exchanges shrank 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 name Gemini has been on the headlines since the Terra-Luna collapse.
Recent data has revealed that the crypto exchange Gemini and its stablecoin, the Gemini Dollar (GUSD), are experiencing a significant drop in active wallets and exchange volume. According to analysis conducted by CryptoSlate, the number of active addresses that hold GUSD has returned to its 2020 levels, while BUSD volume on exchanges has shrunk by 96% in the last seven months.
This comes as a major blow to the exchange and its associated coin, as it serves as a sign that the community’s trust in the platform is waning. This is especially concerning in light of the recent Terra-Luna collapse, which has left many in the crypto space questioning the security of their funds.
Glassnode data reveals that the number of wallets holding GUSD started to increase at the end of 2020 and reached almost 1200 towards the end of 2021. However, active addresses that hold GUSD soon fell by 91.6% and returned to its original levels of 100 in January 2023.
This trend is further demonstrated by the BUSD balance held on exchanges, which started to grow exponentially in July 2021 and breached 300 million in May 2022, just before the FTX collapse. Since then, the BUSD volume has steadily decreased, falling from around 260 million to just above 10 million in January 2023.
The decrease in active wallets and exchange volume serves as a worrying sign for the Gemini exchange and its associated coin, as it suggests that the community is starting to lose trust in the platform. This is especially concerning in light of the recent Terra-Luna collapse, and it remains to be seen if the exchange can recover from this setback.