Terra’s UST outperforms BUSD to become the third-largest stablecoin. UST is a dollar-pegged stablecoin that was released in September 2020. It flipped Binance USD (BUSD) to become the market’s third-largest stablecoin. The total market capitalization of UST has increased by 15% in the last 30 days to $17.5 billion.
With a market price of roughly $17.5 billion, UST, the Terra blockchain’s native programmable stablecoin, has surpassed BUSD, the Binance Chain’s native stablecoin, to become the third most valued stablecoin.
TerraUSD (UST) is a decentralized and algorithmic stablecoin based on the Terra platform. It promotes itself as a scalable, yield-bearing coin with a fixed value of one US dollar. It was launched in September 2020, and the minting procedure needs users to burn a reserve asset such as LUNA in order to produce an equivalent amount of UST.
Despite beating BUSD in terms of market value, UST is trading at a far lower volume, with Binance’s stablecoin seeing $2.26 billion in trading activity in the last 24 hours compared to $431.79 million for UST.
Terra has recently made news, thanks in part to co-founder Do Kwon’s recent pledge that the project will amass a stunning $10 billion in Bitcoin (BTC) to back its UST reserves.
However, much like the wider crypto market recently, bullish pronouncements are doing nothing to push the price of LUNA higher. The token’s price has dropped 12.4 percent in the last 30 days to $77.31, and it has also dropped 34.4 percent since its all-time high of $119.18 on April 5.
The switch occurred yesterday, with UST rising 0.69 percent from $17.39 billion to $17.5 billion. As of this writing, the market capitalization of BUSD is at $17.46 billion.
The asset is now only following industry titans Tether (USDT), which has a market value of $82.8 billion, and USD Coin (USDC), which has a market capitalization of $50 billion.
The Terra Foundation has purchased 42,530.83 BTC, which is worth around $1.65 billion, to support its stablecoin. The wallet address is now ranked #18 on the list of the wealthiest Bitcoin wallets. With the Anchor protocol’s steady interest rates, users can earn passive income using TerraUSD.
However, much like the wider crypto market recently, bullish pronouncements are doing nothing to push the price of LUNA higher. The token’s price is down 35.66 percent from its all-time high of $119.18 set nearly two weeks ago, trading at $76.68 at the time of writing.
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Also read: Ethereum Foundation has $1.6 billion in Treasury holdings
