UST stablecoin falls to record low amid continued market tumult


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The price of algorithmic stablecoin UST fell to a new low on Monday amid continued volatility in the broader cryptocurrency market.

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According to market data from Binance, which hosts the most voluminous market pair for UST against USDT, the stablecoin hit a low of $0.9202.

The price has since regained some ground and is trading at $0.948, market data shows. UST had begun to lose renewed ground against the dollar earlier Monday, as The Block reported. 

Source: TradingView

The tumultuous period kicked off on Saturday, triggered by a series of market events that led UST to struggle to hold parity against the dollar. An algorithmic stablecoin, UST utilizes market incentives in order to maintain its $1 peg. 

Monday’s fall is significant as it represents a new market low for UST, which fell to $0.96 in May 2021 amid “extreme volatility,” as the Terra team said at the time.

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The development came hours after the Luna Foundation Guard, a Singapore-based nonprofit intended to support both Terra-based stablecoins and the broader ecosystem around that network, announced a plan to lend $1.5 billion worth of bitcoin and UST to third-party trading firms, with the intention of providing support for UST’s peg.

Terraform Labs co-founder Do Kwon alluded to this support in a 2:36 p.m. ET tweet, writing: “Deploying more capital – steady lads.”

The moves also come amid broader volatility in the crypto market. Bitcoin’s price fell to a low of $30,311 .99, building on an earlier decline that began Monday, as reported by The Block. Bitcoin is currently trading hands at approximately $30,670 on Coinbase, according to TradingView data. 

Equities are also seeing declines, with the Nasdaq Composite down roughly 3.5% as of press time. 

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