Lately, the stablecoin TerraUSD (UST) has been in the spotlight. Do Kwon, Stablekwon on Twitter, shares very publicly those developments and decisions that are made around the stablecoin of the large crypto company Terra, which is also responsible for the cryptocurrency LUNA.
It was announced that, in addition to Luna, Bitcoin and Avalanche have also been added to the backing behind stablecoin. Among other things, this has caused the stablecoin to increase significantly in size, and has now even overtaken Binance USD – BUSD in market cap. This currently makes UST the 3rd largest stablecoin out there.
The Growth of UST
As TerraUSD’s vault, which thus currently consists of LUNA, BTC and AVAX, grows, new USTs are minted. So this means that as the vault grows, the stablecoin grows and indirectly that as the crypto market grows, the TerraUSD stablecoin grows.
In recent days, the market cap of UST has grown by a whopping 15.2%. Very much so. Especially when you compare it to a number of other stablecoins that are high in the rank. The market cap of Tether (USDT) increased by 2.5%, while the market cap of USD Coin – USDC decreased by 5.7%. While TerraUSD increased significantly this month, its ‘competitor’ Binance USD decreased by 2.5%, which means that UST now claims the 3rd place in the list of largest stablecoins.
The step to spot 2 is still quite large. USDC, which currently holds second place, is still over 2.5 times larger than UST. In addition, it is available on almost 6 times as many exchanges as UST. So there is certainly still a lot of room for growth for TerraUSD. Especially the fact that Do Kwon is so open about his moves makes UST something to look out for. We will keep you posted!
