With $17.54 billion in market capitalization, Terra’s algorithmic stablecoin (LUNA), has now become the third largest stablecoin token. As of today, UST’s market capitalization has surpassed the BSC-based stablecoin BUSD by more than $67 million.
Stablecoin Terrausd Surpasses BUSD’s Market Valuation
There’s a new leader in the world of stablecoins, as Terra’s dollar-pegged algorithmic cryptocurrency now commands the third-largest stablecoin position, in terms of overall market valuation. Statistics indicate that terrausd’s (UST) issuance increased by 14.9% over the last month and currently the stablecoin has a market cap of around $17.54 billion. BUSD currently holds a market capital of $17.47 trillion, while the stablecoin is at around $17.54 billion.
This milestone means that UST has become the biggest decentralized stablecoin in existence under two centralized stablecoin giants. The centralized stablecoin token (USDT), which has a market cap of $82.6 billion, is known to be the most valuable stablecoin. Our second largest stablecoin market value is usdcoin (USDC), which currently has a capitalization of $49.8 billion at the time.
While Terra’s UST is the third largest, it only represents 21.23% of USDT’s overall value. However, Terra’s UST represents 35.22% of USDC’s market cap today. UST’s market capitalization today is $67 million more than BUSD. UST, however, is also a centralized stabilizecoin. BUSD’s reserve assets are held by the digital currency company Paxos, while the algorithmic stablecoin UST is created via a burning process using the Terra network.
UST is essentially created by burning a single U.S. dollar’s worth of terra (LUNA), the Terra network’s native crypto asset. Other types of decentralized stablecoin projects like Makerdao’s DAI leverage an over-collateralization process to keep the token pegged to the value of one USD. Terra’s stablecoin UST has grown exponentially during the last 509 days or 16 months. On November 25, 2020 UST had a circulating stock of 13.2 Million coins. The UST supply has increased to 132.504% since that date.
How do you feel about terrausd(UST) being the third largest stablecoin according to market capital? Please comment below to let us know your thoughts on this topic.
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