UST has emerged as a leading stablecoin company, putting it in the third position after USDT and USDC. It is also the top-ranked stablecoin in decentralized.
A new report from Delphi Digital demonstrates that some of the latest news and developments in the Terra ecosystem are leading to substantial growth in UST adoption – including the new Mars Protocol and Terra’s new ‘LFG’ formation.
UST and The Newest Catalysts
A quick briefing: UST is Terra Luna’s native stablecoin, a decentralized algorithmic stablecoin that has been emerging throughout the past year. A dollar equivalent to LUNA can be burned by the new UST. The Terra ecosystem has provided many new tools that have led to a significant increase in UST supplies. This has resulted in a substantial rise in UST consumption. LUNA burning also increased significantly.
Delphi points out two key drivers, the Luna Foundation Guard or LFG creation and the new Terra Tool Mars Protocol lockdrop. Of course the lockdrop will result in more locked UST. The formation of Luna Foundation Guard led to a $450M Luna Burn mechanic.
UST continues to grow and Luna burning is on the rise this month.Delphi Digital provided the chart. | Chart provided by Delphi Digital.
Routine bot tool @USTmarketcap reports that the current market capital of UST has surpassed $12B and is fast approaching $13B. And according to Delphi, UST growth is up nearly 10% over the past two weeks – leading to a burn of nearly 12M LUNA tokens over that time.
$USTThe market cap is $12,266,407 and 705.
— UST MarketCap (@USTmarketcap) February 22, 2022
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Luna is a solid performer in comparison to top tokens despite market volatility that began 2022. Source: LUNA-USD on TradingView.com | Source: LUNA-USD on TradingView.com
There’s more than meets the eyes
There’s more happening the Terra ecosystem to spur the stablecoin’s growth lately, too: Terra holders recently approved a new sports sponsorship proposal for Major League Baseball’s Washington Nationals, and more platforms have been entering the ecosystem lately as Terra looks to build on it’s flagship Anchor Protocol product.
One barrier for Terra users is access and onboarding. US-based users have historically had to jump through quite a few hoops in order to allocate their UST holdings in Anchor Protocol, and now new tools are making the process much easier – such as the Kado Ramp, which allows users to easily and cost-effectively onboard UST into their Terra wallets, courtesy of Kado’s banking partner Prime Trust. Prime Trust is an established banking partner who has been working with many platforms such as Binance. While Kado isn’t an end-all, be-all that provides global solutions, it is undoubtedly a fresh new option for select users that have previously had a much more ‘tooth pulling’ experience thus far.
More case studies are available. Look no further than today’s announcement from the Luna Foundation Guard, which shared a new $1B private token purchase of BTC to establish a decentralized UST Forex reserve.
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