Four significant transactions totaling 42 millionTerra (UST) were executed as prominent Ethereum (ETH) whales go after the cryptocurrency.
In a 24-hour period, renowned Ethereum (ETH) whales have snatched a whooping 42 million Terra (UST), per WhaleStats.
A whale, in simple terms, is an individual that holds a substantial amount of cryptocurrencies. Terra USD, or UST, is the Terra blockchain’s own decentralized stablecoin.
Within the past 5 hours, according to whale monitoring site WhaleStats, the 42 million UST was purchased in four huge transactions.
The transactions included the acquisition of 15,000,000 Terra (UST) (equivalent to $15,060,000), 9,000,000 Terra (UST) (equivalent to $9,036,000), and a subsequent transaction involving an Ethereum (ETH) whale acquiring 10,000,000 Terra (UST) (equivalent to $10,040,000). Another Ethereum (ETH) whale bought 8,000,000 Terra (UST) equivalent to $8,032,000, in the last transaction executed.
Major investors prefer to turn their focus to more stable digital assets such as stablecoins during times of volatility and macro declines in the crypto market.
Investors have the ability to sell 1 Terra (UST) for $1 of Terra (LUNA) at any given time thanks to the swap mechanism that ensures the stability of the native stablecoin of the Terra blockchain which is pegged to the US Dollar.
Consequently, the supply of Terra (LUNA) is likely to be reduced in times of high volatility as the demand shifts to Terra (UST).
Because burning Terra (LUNA) aids in the production of Terra (UST), the prospects of LUNA are tightly correlated to those of UST. In other words, $1 worth of Terra (LUNA) must be taken out of circulation in order to generate 1 Terra (UST).
The market cap of Terra (UST) has incurred an incredible increase of $14.7 billion. This surge makes the stablecoin the fourth biggest in the world. On yet another positive note, the market cap of Terra (LUNA) has also surged, with the cryptocurrency changing hands at $91.65 at the time of writing, and holding the place as the 7th biggest cryptocurrency by market capitalization.