TerraUSD (UST) Its price, which was fixed at $1, fell for the second time in three days.
The stablecoin’s price dropped to $0.98, according to Coin Market Cap data.
TerraUSD (UST) Price Drops to $0.98
In the Bitcoin drop on Saturday, the UST price dropped to $ 0.985 and rose back to $ 1 on Sunday.
As it is known, TerraUSD, an algorithmic stablecoin, is its sister token. LUNA Working with its price, it uses a series of mint and burn mechanisms, thereby fixing its price at $1.
The TerraUSD token had fallen below $1 before, and the decline was even greater. But the latest drop is this algorithmic stablecoin from the Terra Foundation. bitcoin and Avalanche (AVAX) It was the first to announce that it started to support it with its reserves and it made a lot of noise.
Terra Foundation “Borrowed” $1.5 Billion Bitcoin
When a stablecoin is traded at a different level than the price of the asset it is tracking, it is called a “depeg”. The last depeg experienced by UST came after the Terra Foundation Guard announced on Sunday night that $1.5 billion in Bitcoin reserves would be “leasing” to professional market makers in order to maintain the fixed price of TerraUSD at $1.
As we announced earlier, Tron founder Justin Sun also announced that they are creating an algorithmic stablecoin similar to Terra’s and will start offering 30% annual returns for the first time. It is thought that the exits from Terra’s stablecoin platform Anchor may have been triggered by this announcement.
*Not investment advice.