Terra’s UST Climbs Into Top 3 Stablecoins Above BUSD

  • Terra’s native stablecoin UST is now the third biggest stablecoin by market cap
  • UST recently upstaged BUSD to claim a spot in the top three
  • Terra’s stablecoin has moved on the uptrend since November 2021, per on-chain data
  • Trading volumes for UST remain lower than BUSD’s transactions
  • The LFG continues to bolster UST’s reserve with a mix of Bitcoin and Avalanche
  • Over 40,000 BTC sits in Terra’s UST vault with CEO Do Kwon saying more Bitcoin buys will follow

UST, the algorithmic stablecoin token for the Terra (LUNA) ecosystem, has become crypto’s third-largest stablecoin currency on Monday (April 18, 2022) following a massive 6-month pump since mid-November last year.

According to data from on-chain aggregator CoinMarketCap, Terra’s UST now sits at $17.53 billion in terms of market capitalization. The rise takes the token into the top three stablecoin ranking ahead of Binance’s stablecoin, BUSD. However, BUSD is not far behind and has a market cap of $17.49 billion as of the time of writing this report. 

Despite UST’s climb into the top three, the stablecoin’s daily trading volume has not surpassed the $1 billion mark. Data from CoinMarketCap shows that UST’s total transaction numbers for the last 24 hours are just over $500 million. 

In comparison, BUSD’s trading volume is almost $4 billion over the past day and sits around $3.88 billion.

Currently, UST is topped by the two leading stablecoin tokens in the market – Tether’s USDT and Circle’s USDC. USDT is the market leader with a massive circulating supply and market cap of around $82.75 billion. USDC is Tether’s closest competitor and boasts a market cap of $50 billion.

Technical analysis suggests that Terra’s stablecoin currency started its rise into the top three slots in November 2021. Since around November 9, 2021, UST’s market cap has maintained an upwards trend and continued to pump aggressively.

Terra's UST Climbs Into Top 3 Stablecoins Above BUSD 1
Terra’s UST Market Cap (Source: CoinMarketCap)

Terra Adds More Bitcoin To Stablecoin Reserves 

The Luna Foundation Guard has bought more Bitcoin in line with its mandate to help grow the Luna ecosystem and bolster UST reserves. According to reports, the LFG purchased an additional $105 million worth of Bitcoin as the crypto markets dipped. 

The organization now holds around 42,000 BTC worth an estimated $1.65 billion at today’s market prices. Also, UST reserves also feature some $100 million in Avalanche (AVAX) tokens as CEO Do Kwon moves to diversity support the stablecoin.

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