- Stable coin TerraUSD (UST) depegged twice in the past few days.
- UST’s lowest price breakout reached almost $0.66.
- Luna Foundation Guard (LFG) announced its $1.5 billion Bitcoin reserves to be loaned out.
Stable coin TerraUSD (UST) continues to have a groovy market performance lately. Specifically, the stable coin has been depegged twice in the past few days. UST’s lowest price breakout reached almost $0.66 per crypto, a price that has been recorded to be the all time low.
This made crypto enthusiast jonwu.eth react in a tweet post,
An $18 billion stablecoin is losing its dollar peg with all the magical chaos of algorithmic stables, with a dash of Bitcoin systemic risk drama.
Here’s everything you need to know.
The $UST Depeg Thread:
— jonwu.eth (@jonwu_) May 9, 2022
In the tweet, jonwu.eth explained things about the stable coin’s wild market swings. “ An $18 billion stablecoin is losing its dollar peg with all the magical chaos of algorithmic stables, with a dash of Bitcoin systemic risk drama.”
However, jonwu.eth also stated that even if UST has a love-hate relationship in the market, there are still ways to profit from the crypto. Anchor Protocol is one of the networks in the crypto-verse that enables users to earn passive income using UST.
Meanwhile, the fall of UST in the past days is not solely due to the market’s wild volatility. The Luna Foundation Guard (LFG) announced last Sunday night about its $1.5 billion Bitcoin reserves to be loaned out drives the price of UST to decline.
At the time of writing, UST is back on track and is now trading at $0.9 per crypto with a huge market cap of over $16 billion. This price bounce of the crypto caught the attention of the crypto Twitter community including crypto analyst Lark Davis.
$ust back to 94 cents on Binance. Wild day man!
— Lark Davis (@TheCryptoLark) May 10, 2022
Regardless, volatility and wild swings are not a new topic in the space. Hence, it is recommended that interested users and investors first study cryptocurrency before diving into the industry. This way, unexpected losses can be prevented while maximizing the potential of the crypto market.