Terra USD is trending in some of the leading crypto markets in the world as of today. The fact that it is a Stablecoin makes it one to look out for.
Terra USD is up there among the list of stablecoins today. The exciting features the coin has makes it one to consider for crypto traders/investors.
In this post, we’ll be discussing why Terra USD is buzzing today as well as its investment opportunities. Before then, let’s learn more about the crypto coin.
What is Terra USD?
Terra USD is the decentralized and algorithmic stablecoin of the Terra blockchain. The coin trades by the symbol UST.
Terra USD is different from the Terra Luna token even though they are tokens issued by the Terra company. UST can be used with LUNA or as a standalone token.
Terra USD was launched in 2020 by the Terra company and has since been one of the top stablecoins to get. The founders of the Terra company are Do Kwon and Daniel Shin. A year after its operation, the company debuted the Terra USD coin.
TerraUSD provides several benefits that have made it a stand-out stablecoin competitor. For this reason, it has been a ‘hot commodity’ in today’s market.
What is Terra USD Worth in the Crypto Market?
Terra USD is one of the fastest growing cryptocurrency in the crypto market today. It is ranked 4th among all Stablecoins by CoinMarketCap listing.
UST is ranked 15th among thousands of cryptocurrencies. As at the time of writing, Terra USD’s price is $0.495364 USD with a 24-hour trading volume of $5,220,281,644 USD.
It has a live market cap of $7,810,342,830 USD. It has a circulating supply of 15,766,888,991 UST coins . You can purchase UST on several exchanges in the world among which is Binance, Coinbase, OKX, etc.
What Makes Terra USD a Hot Commodity Today?
Stablecoins are generally top on the list of investors because they are without price volatility like every other crypto. Terra USD also come with it fine features which makes it one to get for early/veteran investors.
TerraUSD (UST) is the first decentralized stablecoin that provides interest earnings, incredible scalability, and easier interchain movement.
UST can also be easily added to crypto wallets by simply integrating TerraUSD as a payment method. It is also a powerful tool in DApps. For example, platforms that mint fungible synthetic assets and track real-life asset prices use UST as a pricing benchmark.
All these benefits make UST to be listed among top cryptocurrency today. Investors who wants to diversify their portfolio consider Terra USD.
Important Things To Know About Terra USD (UST)
Listed below are top things you need to know about the stablecoin-Terra USD.
1. Terra USD is an algorithmic stablecoin with a value equal to the face value of minted stablecoins.
2. You’ll need to burn 1 Terra LUNA reserve asset to be issued 1 Terra USD.
3. You can easily exchange your Terra USD with Terra KRW (their stablecoin pegged to the Korean Won) with minimal fees. This is because stablecoins in the Terra ecosystem share its total liquidity.
4. Users can gain passive income using TerraUSD with the Anchor protocol’s stable interest rates. Anchor is a lending protocol that promises a 20% return on UST savings.
5. Users may also earn income through rewards in PoS chains, which maintain their stability due to commissions and inflation.
6. With the Dropship bridge protocol, TerraUSD allows blockchain ecosystems to be connected.
7. LUNA supply and demand determine the value of TerraUSD.
8. On May 9, 2022, UST depegged and plunged from $1 to a low of $0.68. Only time will tell if it will recover its peg.
Terra USD vs Terra LUNA
LUNA being the first token of the Terra blockchain has some influence on the stablecoin, Terra USD. Luna is used to generate Terra’s stablecoin pegs. This means that it is in center of the shock absorption process if something goes wrong with the stablecoins on the platform.
LUNA was created to combine the price stability and wide adoption of fiat currencies with the censorship resistance of Bitcoin. UST was however created to deliver value to the Terra community and offer a scalable solution for DeFi amid severe scalability problems faced by other stablecoins.
As at the time of writing, LUNA is ranked 34th, while UST is nineteen places above LUNA in the current market today. UST’s position as stablecoin without price volatility is a major reason for its leapfrog in today’s market.
Is it Safe To Invest In Terra USD?
It is important to know that there are much risk attached to crypto assets which doesn’t exclude Terra. Financial experts view cryptocurrencies as volatile, speculative investments. As quickly as one reaches a new high, it could go back down.
As for UST, the bigger risk is that investors could be subject to losses if Terra’s stablecoins are unable to hold their pegs. The fact that it has depegged and trying to recover its peg is also an issue to consider.
However, stablecoins are safer to invest in as they are pegged to fiat currencies which are generally accepted. Although the token is currently doing well, its impossible to predict its future performance.
Terra USD is a blazing commodity in the market today because of its amazing features as a stablecoin on one of the DeFi protocol, Terra. UST is the first decentralized stablecoin that provides interest earnings, incredible scalability, and easier interchain movement.
Investment in crypto assets is no doubt without risks. It is advisable to invest as much as you can afford to lose in Terra & other assets due to this risks. The fact that cryptocurrency is yet to be accepted by many nations of the world should make you think twice before putting all your hard-earned money into it.