The crypto market is closely following the rise of UST stablecoin. The project created by Terra (LUNA) protocol recently surpassed BUSD (Binance’s stablecoin) in trading volume.
Currently, UST is the third-largest stablecoin in the crypto market by trading volume. After reaching over US$17.5 billion in transactions, UST is only behind Tether (USDT), and USDC pegged to Circle.
Considered the crypto market’s largest stablecoin by trading volume, USDT recorded nearly US$83 billion in transactions in the last month.
Meanwhile, second in the ranking is USDC, which had US$ 50 billion in trading volume. In other words, UST needs to increase its trading volume by 200% to catch up with USDC.
Launched in 2020, UST saw its trading volume increase by 15% last month. Meanwhile, BUSD recorded a volume of US$17.46 billion in the same period.
Bitcoin drives stablecoin growth
The UST stablecoin was created by Terra protocol, which is part of the Luna Foundation. Recently, the platform announced that it wants to buy US$10 billion in bitcoins.
According to the proposal, the cryptoasset will be used as a form of liquidity for transactions on the platform. With the bitcoin acquisition project underway, the Luna Foundation has so far purchased more than 40 thousand units of the digital currency.
This acquisition may have strengthened TerraUST, which has a decentralized protocol geared towards stablecoins on the market. Therefore, with record trading volume at the monthly close, Terra’s stablecoin is currently valued at over US$17 billion on the crypto market.