42 million Terra (UST) snatched by whales: details

According to Whale Statistics data, more than 42 million Terra (UST) have been grabbed by the top ETH whales in the past 24 hours.

Simply defined, a whale is someone who owns a piece of cryptocurrencies or is otherwise a large holder. Terra USD, or UST, is the decentralized and algorithmic stablecoin of the Terra blockchain.

The purchase of the 42 million UST was made in four major transactions, as reported by whale tracking service WhaleStats in the past four hours.

The trades had bought worth 15,000,000 UST or $15,060,000, then 9,000,000 UST or $9,036,000, then another trade of an ETH whale worth 10,000,000 UST or $10,040,000 . In the fourth transaction, an ETH whale bought 8,000,000 UST or $8,032,000 worth.

During periods of volatility and macro dips in the cryptocurrency market, large investors tend to shift their focus to less volatile crypto assets such as stablecoins.

Terra (UST) as a stable currency

UST, Terra’s native dollar-pegged stablecoin, is kept stable by a swap mechanism, where traders can sell 1 UST for $1 to LUNA at any time.

Increased stability can result in stronger demand for UST, decreasing the supply of LUNA. The generation of UST is sustained by the burning of LUNA, therefore LUNA’s fortunes are inseparable from UST’s. To put it another way, to mint one UST, $1 worth of LUNA must be withdrawn from circulation.

UST’s market cap has risen dramatically to $14.7 billion, according to the data tracking website CoinMarketCap, making the dollar-pegged digital asset the fourth-largest stablecoin in the world. Meanwhile, Terra’s LUNA has steadily risen in market value to become the seventh largest cryptocurrency, trading at $91.65 at the time of writing.

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