Hike of 17% Witnessed in the Value of Terra’s LUNA as UST Becomes The Third Largest Stablecoin

Terra USD (UST), a stablecoin from the Terra ecosystem, has reached another significant milestone. It has surpassed $17 billion in market valuation to become crypto’s third-largest stablecoin. It surpassed Binance USD (BUSD) to go into the third position, although by a margin of only $68 million.

Tether (USDT) is the world’s most valuable stablecoin, with a market value of $82 billion, followed by USD Coin (USDC), which has a market valuation of $49 billion.

What’s Terra UST?

UST is a stablecoin tied to the US dollar released in September 2020. Its minting technique necessitates burning a reserve asset, such as Terra (LUNA), to mint an equivalent quantity of UST. As a result, UST is trading in far lower quantities despite having a more considerable market value than BUSD. Binance’s stablecoin has witnessed $2.26 billion in trading activity over the last 24 hours compared to UST’s $431.79 million.

Terra has been making news recently, thanks partly to co-founder Do Kwon’s recent announcement that the project will amass $10 billion in Bitcoin (BTC) to back its UST reserves. Unfortunately, like the rest of the crypto market, bullish statements 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, and it has fallen 34.4 percent since hitting an all-time high of $119.18 on April 5.

Key Points to Note

• LUNA surged over the pivot support level of $80-$82 to as high as $92.07 during early Asian hours. Profit-taking caused prices to drop below $89 at writing, a new support level for the coin. Following historic highs over $120 earlier this month, the stock dropped roughly 37% in the first two weeks of April.

• Terra’s money market system has a governance token called LUNA. During the late hours of Monday, Terra’s algorithmic stablecoin UST overtook Binance USD (BUSD) to become the third-largest stablecoin by circulation.

• According to research firm Delphi Digital, Terra also became the highest buyer of Convex’s CVX token in the last 30 days, with over $17 million in transactions.