UST growth continues in a turbulent market
UST has established itself as an emerging leader in stablecoins, placing the token in third place behind USDT and USDC, and the leader in decentralized stablecoins.
A new report from Delphi Digital shows that some of the latest news and developments in the Terra ecosystem are driving substantial growth in UST adoption – including the new Mars Protocol and Terra’s new ‘LFG’ formation.
UST and the latest catalytic converters
A quick briefing: UST is Terra Luna’s native stablecoin, a decentralized algorithmic stablecoin that has been on the rise over the past year. The minting of new UST burns a dollar equivalent of LUNA. The past few weeks have seen significant growth in UST offerings, fueled by a number of new tools available in the Terra ecosystem, and accordingly LUNA burning has also increased significantly.
Delphi cites two main drivers: the creation of the Luna Foundation Guard (or LFG) and a new lock drop of the emerging Terra tool Mars Protocol. The lockdrop will, of course, lead to more locked-down UST, and the formation of the Luna Foundation Guard resulted in a $450 million Luna fire engineer.
UST growth continues and Luna burning has increased this month. † Map provided by Delphi Digital†
According to routine bot tool @USTmarketcap, UST’s current market cap has crossed $12 billion this month and is rapidly approaching $13 billion. And according to Delphi, UST’s growth has jumped nearly 10% in the past two weeks, leading to a burn of nearly 12 million LUNA tokens during that time.
$UST Market cap is $12,266,407,705
— UST MarketCap (@USTmarketcap) February 22, 2022
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Despite the remarkable market turbulence that was present to start 2022, Luna performed strongly compared to many other top tokens. † Source: LUNA USD on TradingView.com
There’s more than you can see
There’s been more happening in the Terra ecosystem lately to fuel the stablecoin’s growth: Terra holders recently approved a new sports sponsorship proposal for Major League Baseball’s Washington Nationals, and lately, more platforms have emerged. ecosystem as Terra appears to be building on its flagship Anchor Protocol Product.
For example, a barrier to entry into the Terra ecosystem was accessibility and onboarding. US-based users have had to jump through a lot of hoops in the past to allocate their UST holdings in Anchor Protocol, and now new tools make the process much easier – like the Kado Ramp, which allows users to onboard easily and cost-effectively. from UST in their Terra portfolios, courtesy of Kado’s banking partner Prime Trust. Prime Trust is an established banking partner that has partnered with major platforms, such as Binance. While Kado is not an all-inclusive solution that offers global solutions, it is undoubtedly a fresh new option for select users who have had a much more “teeth-pulling” experience thus far.
Need more case studies? Look no further than today’s announcement from the Luna Foundation Guard, which shared a new $1B private token purchase of BTC to set up a decentralized UST Forex reserve.
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Featured Image from Pexels, Charts from TradingView.com The author of this content is not associated or affiliated with any of the parties mentioned in this article. This is not financial advice.