Terra’s Algorithmic Dollar-Pegged Crypto UST Is Now the Third-Largest Stablecoin – Altcoins Bitcoin News

Terra's Algorithmic Dollar-Pegged Crypto UST Is Now the Third-Largest Stablecoin


The algorithmic stablecoin stemming from the Terra (LUNA) network has become the third-largest stablecoin token in terms of market capitalization at $17.54 billion. As of today, UST’s market capitalization has surpassed the BSC-based stablecoin BUSD by more than $67 million.

Stablecoin Terrausd Surpasses BUSD’s Market Valuation

There’s a new leader in the world of stablecoins, as Terra’s dollar-pegged algorithmic cryptocurrency now commands the third-largest stablecoin position, in terms of overall market valuation. Statistics indicate that terrausd’s (UST) issuance increased by 14.9% over the last month and currently the stablecoin has a market cap of around $17.54 billion. The stablecoin has managed to surpass BUSD, which currently has a market cap of around $17.47 billion on Monday, April 18, 2022.

The milestone also means UST is the largest decentralized stablecoin under two centralized stablecoin behemoths. It is well known that the centralized stablecoin tether (USDT) is the largest stablecoin today, with a market capitalization of around $82.6 billion. The second-largest stablecoin market valuation is held by usdcoin (USDC) which has a $49.8 billion capitalization at the time of writing.

While Terra’s UST is the third largest, it only represents 21.23% of USDT’s overall value. However, Terra’s UST represents 35.22% of USDC’s market cap today. In terms of market cap size today, UST is valued at over $67 million higher than BUSD, which is also a centralized stablecoin. BUSD’s reserve assets are held by the digital currency company Paxos, while the algorithmic stablecoin UST is created via a burning process using the Terra network.

bybit

UST is essentially created by burning a single U.S. dollar’s worth of terra (LUNA), the Terra network’s native crypto asset. Other types of decentralized stablecoin projects like Makerdao’s DAI leverage an over-collateralization process to keep the token pegged to the value of one USD. Terra’s stablecoin UST has grown exponentially during the last 509 days or 16 months. On November 25, 2020, UST had a circulating supply of 13.2 million coins and since then, the UST supply has increased by 132,504%.

Tags in this story

Algorithmic stablecoin, Altcoins, BSC-Based Stablecoin, Burn LUNA, BUSD, Centralized Stablecoin, DAI, Decentralized Stablecoin, LUNA, Luna Burn, over-collateralization, Stablecoin, stablecoin assets, terra (LUNA), Terra Network, Terra stablecoin, Tether, Tether (USDT), USD, USDC, usdcoin (USDC), USDT, UST

What do you think about terrausd (UST) becoming the third-largest stablecoin by market cap? Let us know what you think about this subject in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

More Popular News

In Case You Missed It



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Pin It on Pinterest