Terra’s UST Outperforms BUSD, Becomes Third Largest Stablecoin

Terra USD (UST), the algorithmic stablecoin on the Terra (LUNA) blockchain, has surpassed Binance USD (BUSD) to become the market’s third-largest stablecoin.

UST is a USD-based stablecoin that was introduced in September 2020. The minting process needs a user to burn a reserve asset such as LUNA in order to mint an equivalent amount of UST.

According to Coingecko, UST’s total market value has increased by 15% in the last 30 days to hit around $17.5 billion. UST is now the third most valuable stablecoin in terms of market value, having beaten BUSD’s $17.46 billion market value.

The asset trails only Tether (USDT), an industry titan, at $82.8 billion, and USD Coin at $50 billion, although the difference is enormous at this time.

UST has been on a rampant surge since mid-November, with the market capitalization growing exponentially since then.

Despite outperforming BUSD in terms of market value, UST is trading at a far lower volume, with Binance‘s stablecoin witnessing $2.26 billion in trading activity over the last 24 hours compared to UST’s $431.79 million.

Terra recently made news, owing in part to Do Kwon, the project’s co-founder, who recently pledged that the initiative would amass an astounding $10 billion in Bitcoin (BTC) to back its UST reserves.

Similar Terraform Labs provides $880 million to the Luna Foundation Guard. Bullish statements, like the rest of the crypto market, aren’t helping LUNA’s price rise.

The token’s price has dropped 12.4% in the last 30 days to $77.31, and it has also dropped 34.4 percent from its all-time high of $119.18 on April 5.