The Terra USD (UST) Algorithmic Stablecoin on the Terra blockchain (LUNA) surpassed Binance USD (BUSD) to become the third-largest Stablecoin on the market.
UST is a U.S. dollar-linked staplecoin 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, the total market capitalization of USTs has risen 15% in the past 30 days and is approximately $17.5 billion at the time of writing.
The asset is currently second only to industry giants Tether (USDT) with a capitalization of $82.8 billion and USD Coin (USDC) with a capitalization of $50 billion.
The data also shows that Stablecoin’s market capitalization has increased by 525% since mid-November.
Earlier, Terra co-founder Do Kwon said the company would create a $10 billion bitcoin reserve to support the UST.