As per the recent data, the algorithmic stablecoin of the Terra (LUNA), TerraUSD (UST) has defeated Binance USD (BUSD) to sit on the third spot in the list of the biggest stablecoins based on the market capitalization.
Terra Lab’s UST grabs the third spot
The total market capitalization of Terra Lab’s stablecoin UST has grown by around 15% in the past 30 days and is currently residing around $17.53 billion. The data by Coingecko also reveals the constant upward motion of the stablecoin in terms of market cap since November last year. Interestingly, UST’s market cap has seen a rise of more than 500% in the past five months.
It has flipped the previous third-largest stablecoin, BUSD which currently has a market cap of around $17.45 billion. The current figures have placed the token behind Tether (USDT) and USD Coin (USDC) with a market cap of $82 billion and $50 billion, respectively.
Launched in September 2020 by Terra Labs, UST has been a favorite of many in the industry. It is a USD-pegged stablecoin and requires burning of a reserve asset like LUNA to mint an equivalent valued amount.
Terra’s upward motion
Terra has been constantly in headlines for the efforts to improve its mechanism and reserves. One of the biggest reasons for the boom could be the Do Kwon’s (co-founder of Terraform Labs) vow to back the UST reserves with $10 billion worth of Bitcoin. The company recently gifted $880 million to Luna Foundation Guard under the plans.
As we reported, Terra has also shifted its focus to other solid assets and recently added $100 million worth of Avalanche (AVAX) to its UST reserve.
Bullish statements, like the rest of the crypto market, haven’t done anything to boost the price of LUNA lately. It was trading at $77.13 at the time of publication, down more than 12% in the last 30 days.
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