Conquering Terrain: Terra’s Stablecoin UST Is Now Crypto’s Third Biggest
April 19 2022 - 3:50AM
NEWSBTC
Terra’s US dollar-pegged algorithmic cryptocurrency UST is moving
up the ladder and now ranks third in terms of overall market
capitalization. Today, the fast-growing Terra USD (UST) stablecoin
from the Terra ecosystem passed another pivotal point, reaching a
market valuation of more over $17 billion. As of Tuesday, UST had
eclipsed the BSC-based stablecoin BUSD in market capitalization by
more than $67 million. UST was operations in September 2020.
To mint an equivalent amount of UST, a user must burn a reserve
asset such as Terra (LUNA). UST Making Headlines This year, the
Terra blockchain network has been the talk of the crypto world.
Following its participation in the broader market downturn over the
weekend, Terra’s native cryptocurrency LUNA has had the highest
24-hour bounce. Terra (LUNA) is currently trading 15% higher at
$90, with a market valuation of $32 billion. Terra has surpassed
Cardano’s ADA to become the eighth-largest cryptocurrency by market
cap as a result of this development. As of this writing, the
leading stablecoin is Tether (USDT), which has a market cap of $82
billion. USD Coin (USDC) is ranked second with a market cap of
nearly $50 billion. Suggested Reading | Terra (LUNA)
Outperforms Popular Cryptos Ether, Dogecoin In The Past 24 Hours
LUNA total market cap at $31.10 billion on the daily chart |
Source: TradingView.com UST is formed by burning a single terra
(LUNA), the Terra network’s original crypto currency. Other sorts
of decentralized stablecoin projects, such as Makerdao’s DAI, rely
on an over-collateralization procedure to maintain the token’s peg
to the dollar. The value of Terra’s stablecoin UST has increased
exponentially during the last 509 days, or 16 months. Additionally,
recent data indicates that UST has been on a stratospheric rise
since mid-November, with the market cap jumping by 525 percent.
Lower Trade Volume Despite outperforming BUSD in terms of market
capitalization, UST trades at a far lower volume compared to its
immediate competition, with Binance’s stablecoin witnessing
$2.25 billion in trading volume over the last 24 hours
compared to UST’s $431.78 million. On the other hand, Terra
has recently made headlines for its Bitcoin acquisition. The Luna
Foundation Guard (LFG), its parent organization, has acquired
approximately 30,000 BTC to act as a peg and reserve for its UST
stablecoin. But, it has a lot going on behind the scenes. LFG
intends to acquire a total of 410 billion dollars’ worth of
Bitcoin. However, similar to the broader crypto market in recent
months, bullish pronouncements are doing nothing to boost the price
of LUNA. The token’s price has fallen 12.5% in the last 30 days to
$77.30, and it has also retreated 34.3 percent since
reaching an all-time high of $119.18 on April 5. Suggested Reading
| Bitcoin Clings To $40K On Easter Sunday As Crypto Seen To Head
Lower In The Short Term Featured image from Cryptonary, chart from
TradingView.com
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