UST: The New Heavyweight Contender in the Stablecoin Arena

Introducing the New Kid on the Blockchain

Hold onto your digital wallets, folks! The Terra blockchain’s algorithmic stablecoin, Terra USD (UST), has officially elbowed its way past Binance USD (BUSD) to secure its spot as the third-largest stablecoin in the crypto boxing ring, with about $17.5 billion in market cap. That’s like showing up to a tea party with a double shot of espresso and stealing the show!

A Stablecoin Like No Other

UST is pegged to the U.S. dollar and was launched back in September 2020. Its minting mechanism is quite the science fair project. To mint UST, users have to burn a reserve asset, like Terra (LUNA). Think of it as a magic trick where you turn fire into cash. Instead of a rabbit, you get a stablecoin!

The Rise of UST: A Meteoric Surge

CoinGecko reports that UST’s market capitalization shot up by an impressive 15% over the last month, climbing like a cat on a hot tin roof. This stellar performance is no fluke, as UST’s market cap has skyrocketed by a staggering 525% since mid-November. Move over, BUSD; this isn’t a gentle nudge—it’s a full-on cosmic shower of crypto love!

Trading Volumes: A Peek Behind the Curtain

Despite claiming the third spot, UST has a trading volume that sounds more like the quiet kid at school—just $431.79 million in the last 24 hours! In contrast, BUSD is raking in around $2.26 billion. Ouch. UST’s trading activity is only a fifth of that of its rival. It’s a bit like scoring a winning beauty pageant title but not being able to remember your own name!

Is Do Kwon a Crypto Whizz or What?

Terra’s co-founder, Do Kwon, is in the news too! He made headlines announcing plans to grab $10 billion worth of Bitcoin (BTC) as backers for UST’s reserves. It’s certainly ambitious. But like any good plot twist, while the headlines are compelling, it’s doing little to boost LUNA’s price. It’s been down 12.4% over the last month, sitting at $77.31, even after hitting a peak of $119.18 on April 5. It’s like preparing for a grand launch and then forgetting the fireworks!