By Nathan Ferguson
The UST (TerraUSD) stablecoin – a good developed by the Luna ecosystem – has outcompeted the BUSD (Binance USD) in market capitalization to turn into the third-biggest stablecoin. UST, with having a market capitalization of up to $17.5B, is currently the sole token at the back of USD Coin and Tether, having market capitalizations of $49.9B and $82.8B respectively.
UST’s value skyrockets
A swift growth has been witnessed by the UST stablecoin, specifically since this year’s beginning. The elevation in the market capitalization has been coming along with the additional exposure targeting the UST as well as the LUNA token. Nonetheless, the respective exposure does not have a positive position constantly, with Terra witnessing a few controversies. The LFG (Luna Foundation) – a non-profit institution that focuses on supporting the Terra ecosystem’s development and research – has been incorporating additional AVAX and Bitcoin.
At present, the LFG has more than 42,000 Bitcoin and is targeting the high objective of getting a hold of $10B worth of Bitcoin. The entirety of the respective news has paved a way for the LUNA token to touch an all-time high (ATH). The Terra network anticipates incorporating 160 more projects by this year’s denouement to strengthen the total cumulative value of the venue.
Crossing BUSD’s market capitalization does not count to be an ordinary achievement, although the trading volume of UST is even now BUSD’s one-fifth. Considerable attention would be grasped by this, particularly as the Do Kwon (the co-founder of Terra) stated that DAI will get eliminated.
UST and Terra allure controversy
Not the entirety of the news related to the Terra ecosystem is optimistic. The ecosystem’s resilient escalation in 2021 has been a topic of a lot of argument as well as controversy, as a few suspect the sustainability thereof. The respective apprehensions deal with the change in the price of the LUNA token which was a consequence of Kwon’s embrace of almost $10M as well as a bet of nearly $1M that no decrease will be witnessed in it lower than $88 till a year.
With such hefty bets, Do Kwon seems to be confident about the further growth in the price of the LUNA token. This is another fact that Do Kwon was provided on the behalf of the Securities and Exchange Commission (SEC) of the United States with a subpoena at an open conference. A legal case was submitted by Terraform against the watchdog following this incident.