Terra USD (UST), the Terra (LUNA) blockchain’s algorithmic stablecoin, has surpassed Binance USD (BUSD) to become the market’s third-largest stablecoin.
The UST stablecoin was created in September 2020 and is pegged to the US dollar. Its minting system necessitates the burning of a reserve asset, such as LUNA, in order to mint an equivalent quantity of UST.
UST’s overall market capitalization has risen 15% in the last 30 days, to almost $17.5 billion at the time of writing, according to Coingecko. After flipping BUSD with a slightly lower market cap of $17.46 billion, the statistic now positions UST as the third-largest stablecoin.
The asset is now lagging market leaders Tether (USDT) at $82.8 billion and USD Coin (USDC) at $50 billion, but the gap is wide at this point.
The data also shows that UST has been on a parabolic rise since mid-November, with a 525 percent increase in market cap since then.
Despite having a larger market cap than BUSD, UST is trading in far lower quantities, with Binance’s stablecoin witnessing $2.26 billion in trading volume over the last 24 hours compared to UST’s $431.79 million.
Terra has been making headlines recently, thanks in part to co-founder Do Kwon’s promise that the project will amass $10 billion in Bitcoin (BTC) to back its UST reserves.
Bullish statements, like the rest of the crypto market, haven’t done anything to boost the price of LUNA recently. The token’s price has dropped 12.4% in the last 30 days to $77.31. Then, it has dropped 34.4 percent since hitting an all-time high of $119.18 on April 5.
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