The Blockchain Terra Algorithmic Stable Coin (UST) has overtaken Binance USD (BUSD) to become the third largest stablecoin in the market. .
UST is a stablecoin pegged to the US dollar that was launched in September 2020. The minting mechanism requires the user to burn a reserve asset such as LUNA to mint an equivalent amount of UST.
According to Coin Gekko, UST's total market capitalization has increased by 15% over the past 30 days to nearly $17.50 billion at the time of writing. That number currently puts UST as the third largest stablecoin after overtaking BUSD with a slightly lower market capitalization of $17.46 billion, Coin Telegraph reported.
The asset is now only behind industry giants Tether (USDT) at $82.8 billion and USDC at $50 billion, however, the The gap is too big at this point.
The data also shows that UST has seen a significant rally since mid-November, with market capitalization increasing by 525% since then.
Despite surpassing BUSD in terms of market capitalization, UST trades at significantly lower volumes than its direct competitor, with the Binance stablecoin seeing $2.26 billion in trading volume on over the past 24 hours, compared to $431.79 million.
Tera has made headlines lately, in part due to co-founder Do Kwon, who recently pledged that the project would raise $10 billion in Bitcoin (BTC) to support reserves UST.
