The algorithmic stablecoin stemming from the Terra (LUNA) network has become the third-largest stablecoin token in terms of market capitalization at $17.54 billion. As of today, UST’s market capitalization has surpassed the BSC-based stablecoin BUSD by more than $67 million.
Stablecoin Terrausd Surpasses BUSD Market Valuation
There is a new leader in the world of stablecoins, as Terra’s dollar-pegged algorithmic cryptocurrency now holds the third-largest stablecoin position, in terms of overall market valuation. Statistics indicate that the issuance of terrausd (UST) has increased by 14.9% over the past month and the stablecoin currently has a market capitalization of around $17.54 billion. The stablecoin managed to surpass BUSD, which currently has a market capitalization of around $17.47 billion on Monday, April 18, 2022.
The milestone also means UST is the largest decentralized stablecoin under two centralized stablecoin behemoths. It is well known that the centralized stablecoin tether (USDT) is the largest stablecoin today, with a market capitalization of around $82.6 billion. The second-largest stablecoin market valuation is held by usdcoin (USDC) which has a $49.8 billion capitalization at the time of writing.
Although Terra’s UST is the third largest, it only accounts for 21.23% of the overall value of USDT. However, Terra’s UST now represents 35.22% of USDC’s market capitalization. In terms of market cap size today, UST is valued over $67 million more than BUSD, which is also a centralized stablecoin. BUSD reserve assets are held by digital currency company Paxos, while the UST algorithmic stablecoin is created through 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 supply of 13.2 million coins and since then, the UST supply has increased by 132,504%.
