The algorithmic stablecoin derived from the Terra (LUNA) network has become the third largest stablecoin token with a market cap of $17.54 billion. As of today, the market cap of UST has surpassed the BSC-based stablecoin BUSD by more than $67 million.
Stablecoin Terrausd surpasses BUSD’s market valuation
Terra’s dollar-pegged algorithmic cryptocurrency now occupies the third-largest stablecoin position in the stablecoin world in terms of overall market valuation. Statistics show that the issuance of terrausd (UST) has increased by 14.9% from the previous month, and the current market value of the stablecoin is about 17.54 billion US dollars. The stablecoin has managed to surpass BUSD and currently has a market cap of around $17.47 billion on Monday, April 18, 2022.
This milestone also means that UST is the largest decentralized stablecoin under the two centralized stablecoin giants. As we all know, the centralized stablecoin Tether (USDT) is the largest stablecoin today, with a market capitalization of about $82.6 billion. The second-largest stablecoin market valuation is held by usdcoin (USDC), which has a market cap of $49.8 billion at the time of writing.
Terra’s UST comes in third, but only accounts for 21.23% of the total value of USDT. However, Terra’s UST currently accounts for 35.22% of USDC’s market cap. In terms of market cap today, UST is worth over $67 million more than BUSD, which is also a centralized stablecoin. The reserve asset for BUSD is held by digital currency company Paxos, while the algorithmic stablecoin UST is created through a burn process using the Terra network.
UST is essentially created by burning one dollar of terra (LUNA), the native crypto asset of the Terra network. Other types of decentralized stablecoin projects, such as Makerdao’s DAI, utilize an over-collateralization process to peg tokens to a $1 value. Terra’s stablecoin UST has grown exponentially over the past 509 days or 16 months. On November 25, 2020, the circulating supply of UST was 13.2 million, and since then, the supply of UST has increased by 132,504%.
What do you think of terrausd (UST) becoming the third largest stablecoin by market cap? Let us know what you think about this topic in the comments section below.
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