UST Passes BUSD to Become the Third-Largest Stablecoin
TerraUSD’s market capitalization has surpassed that of BUSD, placing it behind USDT and USDC. UST’s market capitalization has increased to $17.7 billion, making it the third-largest stablecoin by that metric.
The TerraUSD (UST) stablecoin, a product of the Luna ecosystem, has overtaken Binance USD (BUSD) to become the third-largest stablecoin in terms of market capitalization. With a market capitalization of $17.5 billion, UST has surpassed Tether and USD Coin, which have market capitalizations of $82.8 billion and $49.9 billion, respectively.
The UST stablecoin has grown fast in recent months, especially since the start of the year. The growth in market capitalization has resulted in increased exposure for both the LUNA and UST tokens. However, this exposure has not always been favorable, with Terra embroiled in a number of controversies.
The Luna Foundation Guard (LFG), a non-profit organization dedicated to advancing research and development in the Terra environment, has been increasing its holdings in Bitcoin and AVAX. The LFG now has over 42,000 BTC and is striving to reach the ambitious target of $10 billion in BTC.
All of these stories have resulted in an all-time high for the LUNA cryptocurrency. By the end of the year, the Terra network intends to add 160 additional projects, significantly increasing its overall value.
Exceeding the market capitalization of the BUSD is a significant achievement, even if UST trading volume is still one-fifth that of the BUSD. This is certain to get considerable notice, particularly given Terra co-founder Do Kwon’s statement that “DAI will perish at his hand.”
Terra and UST are causing consternation
Not every piece of news about the Terra ecology has been favorable. This year’s rapid rise has generated much debate and controversy, with some questioning its durability.
Due to his reservations about the LUNA token’s pricing, Kwon accepted a $10 million and a $1 million wager that it would not go below $88 in a year. These are substantial wagers, but Do Kwon is confident in the future growth of LUNA’s price.
Additionally, Do Kwon was given a subpoena during a public meeting by the United States Securities and Exchange Commission (SEC). Following receipt of this subpoena, Terraform Labs filed litigation against the SEC.