The value of the UST stablecoin has slumped below $1, according to data from crypto exchange Binance.
UST is a stablecoin backed through its link to the Luna token. Designed as a stablecoin pegged to the US dollar, the value of UST is currently below $1.
UST has previously dropped below $1.
Terra has been buying Bitcoin to supplement stablecoin reserves for some time now. Terra had recently said that he would lend $750 million in Bitcoin to market makers to purchase UST, and stated that it would help return the asset’s value to $1.
Despite this, there seems to be a strong downward pressure on the asset. The asset initially slumped to $0.98 and then rose to $0.986. At the time of writing, UST has regressed to the level of 0.95 according to Binance data.
LUNA was also affected by the downturn of the crypto market and suffered a drop. The asset is trading at $45, well below its all-time high of $118.
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