The acquisitions, and the anticipation of more to come, are supporting the price of bitcoin, with some market players identifying them as a big driver of bitcoin’s climb back towards US$48,000 at the end of March.
TerraUSD is now the fourth-largest stablecoin and, like its peers, is pegged to the dollar. However, while the likes of Tether and USD Coin have reserves in traditional assets which they say match the value of tokens in circulation, TerraUSD maintains its 1:1 dollar peg through an algorithm that moderates supply and demand in a complex process that involves the use of another balancing token, Luna.