TL;DR Breakdown
- UST, the stablecoin of the Terra blockchain labs, is being added to Binance and Huobi exchanges.
- This news pushed the value of LUNA to an ATH of over $100.
Two of the largest crypto exchanges in trading volumes, Binance and Huobi, announced they would list UST. These developments sent the value of LUNA skyrocketing.
UST is the main stablecoin of the Terra blockchain venture. Binance and Huobi serve the most significant number of crypto traders globally. As a result, the listing of any assets on them always attracts the attention of their users. This attraction results in sending the value of the assets to the moon.
Huobi and Binance list UST
The most popular stablecoin from Terra, UST, has hit a significant milestone by getting listed by Binance and Huobi. Huobi is an Asian exchange and recently said it would add it to its lists on December 23, 2021. It also prepared a contest to encourage its users to trade the stablecoin. It announced a giveaway of 210,000 UST tokens.
On the same day, Binance also announced the listing of UST. It said it would offer the coin in three pairs, including other coins like BTC, BUSD, and USDT. These trading pairs are more than Huobi, which only allows for the trade pairing of UST and USDT.
The CEO of Terra labs, Don Kwon, was amused by the development and issued his statement. He noted that with UST available to more people, no one has an excuse to subject their money to centralized projects. Kwon signed off by wishing everyone happy holidays.
Terra Luna skyrockets again
The market capitalization of the UST coin grew at a significant rate over the past week. It shot from $8.8B on December 18, 2021, to around $9.8B on December 24, 2021. Shortly after the official announcement by Binance, over 200 million tokens were issued out. Per the nature of this issuance, the prices of LUNA might have also benefitted massively from the influence.
LUNA is the governance token of Terra labs, and it helps in minting these stablecoins. The relationship between LUNA and UST allows the former to gain value exponentially. As more UST is minted, the total amount of LUNA reduces, increasing its rarity. However, it also depends on the market conditions whether the price of LUNA would follow by rising after the number of UST tokens increases.
After listing UST in the two exchanges, LUNA’s price reacted favorably. It skyrocketed to eclipse the previous ATH of $80 set on December 20, 2021. After UST overtook DAI, this ATH became the most valuable decentralized stablecoin project. Now, the price of LUNA has been varying around the hundred dollar figure. Yesterday, it hit a high of $100.84 due to the ongoing rebound of the crypto market from the December dip.
