Terra’s UST stablecoin is on track to surpass Dogecoin by market cap due to increased demand.
Terra’s UST surpasses Binance USD (BUSD) to become the third largest stablecoin by market cap. UST is also close to surpassing the largest meme coin Dogecoin, with a market cap of $17.5 billion.
Terra, a smart contract platform that competes with Ethereum and other similar blockchain platforms, has been talked about last month because of the non-profit Luna Foundation Guard (LFG). LFG has built a massive Bitcoin reserve to maintain the stability of the UST cryptocurrency.
Tether (USDT) and USD Coin (USDC) remain the two largest stablecoins by market cap. They are worth $85.7 billion and $50 billion, respectively. These stablecoins rely on centralized assets. UST is an algorithmic stablecoin; This means that its price is stabilized with the help of an algorithm powered by a smart contract.
As we reported the other day, LFG bought another $105 million worth of Bitcoin last week. Eventually, Terra plans to hold $10 billion in Bitcoin.
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