In A Turbulent Market, UST Growth Continues
February 22 2022 - 7:58PM
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UST has been establishing itself as an emerging leader in
stablecoins, solidifying the token in the third-place position
behind USDT and USDC, and the leader in decentralized stablecoins.
A new report from Delphi Digital demonstrates that some of the
latest news and developments in the Terra ecosystem are leading to
substantial growth in UST adoption – including the new Mars
Protocol and Terra’s new ‘LFG’ formation. UST And The Latest
Catalysts A quick briefing: UST is Terra Luna’s native stablecoin,
a decentralized algorithmic stablecoin that has been emerging
throughout the past year. With the minting of new UST, a dollar
equivalent of LUNA is burned. Recent weeks have brought substantial
growth to UST supply, spurred by a number of new tools available in
the Terra ecosystem, and accordingly LUNA burning has increased
substantially as well. Delphi cites two major drivers: the creation
of the Luna Foundation Guard (or LFG) and a new lockdrop from
emerging Terra tool Mars Protocol. The lockdrop will, of course,
lead to more locked UST, and the formation of the Luna Foundation
Guard resulted in a $450M Luna burn mechanic. UST growth continues
and Luna burning has increased this month. | Chart provided by
Delphi Digital. According to routine bot tool @USTmarketcap, the
current market cap of UST has surpassed $12B this month and is
rapidly approaching $13B. And according to Delphi, UST growth is up
nearly 10% over the past two weeks – leading to a burn of nearly
12M LUNA tokens over that time. $UST Market Cap is $12,266,407,705
— UST MarketCap (@USTmarketcap) February 22, 2022 Related Reading |
Cardano Daily Transaction Volume Up, But ADA Prices Remain Sluggish
Despite the notable market turbulence present to start 2022, Luna
has been a strong performer relative to many other top tokens. |
Source: LUNA-USD on TradingView.com There Is More Than Meets The
Eye There’s more happening the Terra ecosystem to spur the
stablecoin’s growth lately, too: Terra holders recently approved a
new sports sponsorship proposal for Major League Baseball’s
Washington Nationals, and more platforms have been entering the
ecosystem lately as Terra looks to build on it’s flagship Anchor
Protocol product. For example, one barrier to entry to the Terra
ecosystem has been accessibility and onboarding. US-based users
have historically had to jump through quite a few hoops in order to
allocate their UST holdings in Anchor Protocol, and now new tools
are making the process much easier – such as the Kado Ramp, which
allows users to easily and cost-effectively onboard UST into their
Terra wallets, courtesy of Kado’s banking partner Prime Trust.
Prime Trust is a well-established banking partner that has worked
with major platforms, like Binance. While Kado isn’t an end-all,
be-all that provides global solutions, it is undoubtedly a fresh
new option for select users that have previously had a much more
‘tooth pulling’ experience thus far. Need more case studies? Look
no further than today’s announcement from the Luna Foundation
Guard, which shared a new $1B private token purchase of BTC to
establish a decentralized UST Forex reserve. Related Reading |
Komodo Reformed Amid Market Gloom Featured image from Pexels,
Charts from TradingView.com The writer of this content is not
associated or affiliated with any of the parties mentioned in this
article. This is not financial advice.
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