Terra’s UST Outperforms BUSD, Becomes Third Largest Stablecoin
2022.04.18 12:52
Terra’s UST Outperforms BUSD, Becomes Third Largest Stablecoin
- Terra USDT has surpassed Binance USD to become the third-largest stablecoin.
- UST’s total market value increased by 15% in the last 30 days.
- Despite the market value, UST trade is lower compared to Binance’s stablecoin.
Terra USD (UST), the algorithmic stablecoin on the Terra (LUNA) blockchain, has surpassed Binance USD (BUSD) to become the market’s third-largest stablecoin.
According to CoinGecko, the market value of Terra’s stablecoin UST reached $17.5 billion on April 18, surpassing BUSD’s $17.4 billion, becoming the third-largest stablecoin after USDT and USDC. But UST’s trading volume is very low, only 1/5 of BUSD.
— Wu Blockchain (@WuBlockchain) April 18, 2022
UST is a USD-based stablecoin that was introduced in September 2020. The minting process needs a user to burn a reserve asset such as LUNA in order to mint an equivalent amount of UST.
According to Coingecko, UST’s total market value has increased by 15% in the last 30 days to hit around $17.5 billion. UST is now the third most valuable stablecoin in terms of market value, having beaten BUSD’s $17.46 billion market value.
The asset trails only Tether (USDT), an industry titan, at $82.8 billion, and USD Coin at $50 billion, although the difference is enormous at this time.
UST has been on a rampant surge since mid-November, with the market capitalization growing exponentially since then.
Despite outperforming BUSD in terms of market value, UST is trading at a far lower volume, with Binance‘s stablecoin witnessing $2.26 billion in trading activity over the last 24 hours compared to UST’s $431.79 million.
Terra recently made news, owing in part to Do Kwon, the project’s co-founder, who recently pledged that the initiative would amass an astounding $10 billion in Bitcoin (BTC) to back its UST reserves.
Similar Terraform Labs provides $880 million to the Luna Foundation Guard. Bullish statements, like the rest of the crypto market, aren’t helping LUNA’s price rise.
The token’s price has dropped 12.4% in the last 30 days to $77.31, and it has also dropped 34.4 percent from its all-time high of $119.18 on April 5.
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