Connect with us


Terra’s UST Stablecoin Market Cap About To Surpass Dogecoin’s

Stablecoins are becoming increasingly relevant in digital finance as they now enjoy greater acceptance by businesses and individuals alike. The majority of stablecoins are pegged to a fiat currency, which gives them some form of stability and shields them from the market volatility that has been the norm in the crypto industry.

The Terra UST stablecoin is currently one of the best performing stablecoins out there, increasing adoption with each passing day. It is now the third-largest stablecoin in the market and has become a mainstay in digital financial transactions.

An interesting thing about the UST stablecoin is that it is currently in line to outpace the leading meme cryptocurrency, Dogecoin, in terms of tokens with a large market capitalization, thanks in no small part to the growing demand for the coin.

The UST’s market cap of $17.5 is on track to reach the value of Dogecoin and even surpass it.

Terra’s Competitive Edge

Terra is a smart contract blockchain network competing against most established blockchain networks like Ethereum and others. As evidenced by the headlines it has generated over the past month, its parent company, LUNA Foundation Guard (LFG), has positioned itself well to become a top player in the industry.

Additionally, the LFG has been building massive reserves dominated by Bitcoin and some other tokens to diversify its portfolio. The LFG developed this enormous reserve to help maintain the stability of the token, which is pegged to the value of the USD.

The USD Tether (USDT) and the USD Coin (USDC) are the two largest stablecoins in terms of market cap, with the USDT having a market cap of $85.7 billion and the USDC, $50 billion.

These stablecoins are heavily dependent on centralized fiat currencies to maintain their value, serving as a buffer for price stability. The UST, unlike others, is developed as an algorithmic stablecoin. The token price is stabilized using an algorithm hosted on an innovative contract platform.

Opportunities Abound

The Terra network allows users to burn the LUNA tokens to reduce the circulation of the UST and maintain its price at $1. Besides, users can also make some gains by exchanging their UST coins for the LUNA governance token. This is done to prevent the UST from losing its peg, which is expected to be maintained.

As per the report from U.Today, the LFG has acquired a substantial Bitcoin stash of up to $105 million over the past week. The goal is to buy as many BTC tokens as possible to shore up the Terra reserve and maintain the peg of the UST.

No other stablecoin has given its holders such opportunities as Terra because they are seen as part of the team and, as such, incentivized to put in the effort to help stabilize the token.

Additionally, it is also reported that Terra plans to buy $10 billion in Bitcoin, which is part of the long-term vision to increase the reserve whenever the opportunity to do so arises.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

More in Altcoins

Dogecoin News Hub