Terra’s UST stablecoin surpasses Binance USD in market cap
April 18, 2022
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The capitalization of the algorithmic stablecoin Terra USD (UST) has exceeded $17.53 billion, allowing the asset to bypass Binance USD (BUSD) and take third place in the “stable
The capitalization of the algorithmic stablecoin Terra USD (UST) has exceeded $17.53 billion, allowing the asset to bypass Binance USD (BUSD) and take third place in the “stable coins” rating by this value. In the last 30 days, its rate has increased by almost 15%.
Data: CoinGecko.
Despite the rapid growth in capitalization, UST trading volumes are quite low – $509 million in the past day. For comparison, BUSD’s figure exceeded $2.96 billion, while segment leader Tether (USDT) reached $43.78 billion.
In January 2022, Terraform Labs, the company behind the Terra blockchain, created the non-profit Luna Foundation Guard (LFG) and provided it with 50 million LUNA funding. The purpose of the LFG is to develop the project ecosystem and increase the sustainability of the IHR.
Terraform Labs donated 12 million LUNA to LFG in March. In the same month, the organization began creating a fund designed to “quickly” provide the necessary liquidity in bitcoin to maintain a stable UST price.
In April, Terraform Labs provided an additional 10 million LUNA to LFG. Earlier, they also announced that they will invest $200 million in Avalanche project AVAX tokens. Including expanding UST reserves.
At the time of writing, LFG has $2.38 billion in assets on its balance sheet, approximately 70% ($1.66 billion) of which is bitcoin. Also, the organization’s reserve fund includes USDC and USDT stablecoins, as well as LUNA tokens.
Data: LFG.
According to BitInfoCharts, LFG has bought more than 42,530 BTC in total.
Recall that the algorithmic stablecoin platform Frax Finance will create a reserve crypto fund similar to Terra.
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