Terra UST overtakes BUSD to become third-largest stablecoin by market capitalization
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Algorithmic stablecoin Terra USD (UST) on the Terra (LUNA) blockchain overtook Binance USD (BUSD) to become the third largest stablecoin on the market.
UST is a USD-pegged stablecoin that was launched in September 2020. Its minting mechanism requires the user to burn a reserve asset such as LUNA to mint an equivalent amount of UST.
According to Coingecko, UST's total market capitalization is up 15% over the past 30 days to roughly $17.5B.
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Currently, the asset is second only to industry giants like Tether (USDT) with a capitalization of $82.8B and USD Coin (USDC) with a capitalization of $50B.
The stablecoin’s market capitalization has increased by 525% since mid-November.
Earlier, Terra co-founder Do Kwon said that the company will create a $10B BTC reserve to support UST.
Source: Cointelegraph
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