Terra Buys 2,943 Bitcoin for UST Stablecoin Reserve

• Terra buys different 2,943 BTC, worthy astir $139 million, for its UST reserve.
• Terraform Labs CEO said that the institution is looking to go the second-largest holder of bitcoin aft Satoshi.
• UST has experienced a batch of maturation recently, with implicit a YTD marketplace headdress maturation of 55%.

The Luna Foundation has purchased an further 2,943 BTC, worthy astir $139 million, for its UST reserve. The bitcoin address for the Luna Foundation Guard (LFG) shows the purchase, and that the full BTC present stands astatine implicit 30,000.

LFG’s BTC wallet’s equilibrium change: OKLink

The Luna Foundation Guard has said successful the past that it is considering purchasing arsenic overmuch arsenic $10 cardinal worthy of BTC for its UST stablecoin reserve. Currently, that fig is conscionable nether $1.5 billion.

Terraform Labs co-founder Do Kwon said that helium expects the institution to go the second-largest holder of bitcoin, extracurricular of Satoshi Nakamoto. That is simply a gangly bid and volition necessitate Terraform Labs to bargain overmuch much bitcoin. But it appears that they are determined to bash truthful by caller purchases.

In a recent interview, Do Kwon spoke connected a batch of subjects related to the project, DeFi, and stablecoins. Talking astir the latter, helium said that stablecoins are indispensable due to the fact that radical similar to usage fiat currency, saying,

“Stablecoins are important due to the fact that they facilitate a ton of antithetic transactions that volatile currencies similar luna, solana, oregon bitcoin cannot… Stablecoins contiguous are, successful my opinion, the strongest exertion and usage lawsuit successful each of crypto.”

And UST’s maturation appears to beryllium mirroring that sentiment. The stablecoin has made tremendous advancement successful the past six months, and could adjacent situation immoderate of the market’s astir entrenched stablecoins.

Can UST Challenge Other Stablecoins?

UST is simply a stablecoin that has had its just stock of controversies. Many successful the marketplace don’t judge that the LUNA and UST narration is sustainable. This adjacent led to Do Kwon accepting a $10 cardinal and $1 cardinal bet from a marketplace investor, who said that LUNA’s terms would beryllium down from its existent valuation a twelvemonth from now.

But the marketplace headdress of UST has risen exponentially successful caller months. Year to date, that fig has gone up by 55%, compared to lone 5.7% of DAI, which is 1 of the market’s astir fashionable stablecoins. DAI has a marketplace headdress of $9.2 cardinal and UST has a marketplace headdress of $16.3 billion.

It is lone successful caller months that UST has picked up truthful significantly. After it became the astir staked asset owed to precocious rewards, LUNA’s terms roseate by implicit 23%. Those kinds of headlines are fueling much concern successful the plus and, with much developments astir the corner, that fig could spell adjacent higher.