Blockchain Terra (LUNA) algorithmic stablecoin Terra USD (UST) has made Binance USD (BUSD) the third largest stablecoin on the market.
UST is a USD-pegged stablecoin that was launched in September 2020. Its minting mechanism requires a user to burn a reserve value such as LUNA in order to mint a corresponding amount of UST.
According to Coingecko, UST’s total market cap is up 15% over the past 30 days to around $17.5 billion. The number currently makes UST the third largest stablecoin, having flipped BUSD with a slightly lower market cap of $17.46 billion.
The asset now trails only industry giants Tether (USDT) at $82.8 billion and USD Coin (USDC) at $50 billion, but the gap is quite large at this point.
The data also shows that UST has been running at full steam since mid-November, with the market cap up 525% since then.
Despite BUSD’s tipping over in terms of market cap, UST is trading on volumes well below its immediate competitor, with Binance’s stablecoin recording $2.26 billion in trading volume over the past 24 hours, compared to UST’s $431.79 million -Dollar.
According to CoinGecko, the market value of Terra’s stablecoin UST reached $17.5 billion on April 18, surpassing BUSD’s $17.4 billion and becoming the third largest stablecoin after USDT and USDC. But the trading volume of UST is very small, only 1/5 of BUSD.
— Wu Blockchain (@WuBlockchain) April 18, 2022
Terra has been making headlines lately, due in part to co-founder Do Kwon recently pledging that the project will amass a whopping $10 billion worth of Bitcoin (BTC) to back up its UST reserves .
Related Terraform Labs is gifting Luna Foundation Guard an additional $880 million
However, much like the broader crypto market of late, bullish announcements are doing little to push LUNA’s price higher. The price of the token is down 12.4% over the past 30 days to $77.31, while it is also down 34.4% from its brief all-time high of $119.18 on April 5.
https://cointelegraph.com/news/terra-s-ust-flips-busd-to-become-third-largest-stablecoin Terra’s UST makes BUSD the third largest stablecoin