UST demand rises with 27 million LUNA tokens burned so far in December
According to Terra Analytics, LUNA tokens worth nearly $ 2.7 billion, or 27 million, have been burnt so far in December as UST demand increases. LUNA hit an all-time high of $ 104 on Dec. 27 before declining slightly. At the time of going to press, LUNA was changing hands at $ 98.68, up 26% over seven days, according to data from CoinGecko.
As seen on Terra Analytics, the supply reduction at the start of December was 94,243,648. The difference from the present supply reduction marks nearly 27 million.
Currently, 102.71 million LUNA tokens have been burnt since the Columbus-5 upgrade took effect in late September. Besides interoperability, the Columbus-5 upgrade introduced a new mechanism to keep stablecoins tied to their fiat value: each time the UST is created, the equivalent amount of LUNA is burned.
This gives a direct correlation between the two assets so that “As UST demand goes up, LUNA’s price also goes up.”
LUNA, the native blockchain asset Terra, has appreciated in value and is up 18,134.1% for the year, according to CoinGecko. Terra ranks ninth among cryptocurrencies in terms of market capitalization.
Terra UST flips DAI to achieve $10 billion market capitalization
Co-founder and CEO of Terraform Labs, Do Kwon, shared the news of Terra’s UST reaching $10 billion in market capitalization, being the first decentralized stablecoin to do so. Upon reaching this milestone, UST flips MakerDao’s DAI market capitalization of $9.3 billion.
TerraUSD (UST) is a one-of-a-kind algorithmic coin in which coins are burned or struck to keep the value of the coin in line with the desired price. The algorithm will automatically burn a batch of coins to increase the rarity and thus increase the UST price.
