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- The data from WhaleStats, a whale tracking service, reveals that top ETH whales acquired over 42 million Terra(UST) in the past 24 hours. This, the whales purchased in four transactions.
- In the past, it is seen that the big investors turned to less volatile assets in times of increased volatility and significant dips in the cryptocurrency market.
- UST is kept stable using a swap mechanism. There will be a rise in the demand for UST with the increased stability, reducing the supply of LUNA since the wealth of LUNA is inter-connected with UST.
In the past 24 hours, top ETH whales grabbed more than 42 million Terra(UST), as per the data from WhaleStats.
In the crypto world, whales are individuals who hold over $1 million worth of crypto. Terra USD, or UDT, is the stablecoin of the Terra blockchain.
42 Million Grabbed In Four Big Transactions
WhaleStats, a whale tracking service, reports that 42 million UST were purchased in four large transactions.
The transactions are as follow:
- A transaction had 15,000,000 UST or $15,060,000 worth purchased.
- Another had 9,000,000 UST or $9,036,000.
- Yet another had 10,000,000 UST or $10,040,000 worth.
- The last transaction had an ETH whale buying 8,000,000 UST or $8,032,000 worth.
It is often seen that large investors shift their focus on less volatile crypto assets such as stablecoins when large periods of volatility and macro dips occur in the cryptocurrency market.
LUNA And Terra(UST) Relation
The native dollar-pegged stablecoin of Terra, UST, using a swap mechanism, is kept stable. In the swap mechanism, the traders can sell 1 UST for $1 worth of LUNA at any time.
The increased stability will lead to more demand for UST, mitigating the supply of LUNA. The wealth of LUNA is inevitably linked to the UST supply as the burning of LUNA assists the generation of UST. To be more clear, $1 worth of LUNA must be removed from circulation in order to mint one UST.
Meanwhile, according to the data pulled from coinmarketcap, the market cap of UST has significantly increased to $14.7 billion, making the dollar-pegged stablecoin the
fourth-largest stablecoin in the world. On the other hand, Terra’s LUNA has increased in market value to stand at the seventh-largest cryptocurrency, exchanging hands at $91.20 at the time of writing.
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Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
