On Monday, the price of algorithmic stablecoin UST plunged to a new low amid the persistent market volatility.
According to statistics, the stablecoin reached a low of $0.9202. The price has subsequently recovered slightly and is now trading at $0.948. The Block reported that the UST has lost renewed ground versus the dollar on Monday morning.
The turbulent time began on Saturday when a series of market developments caused the UST to struggle to maintain parity with the dollar. The algorithmic stablecoin UST uses market incentives to preserve its $1 peg.
Monday’s decline is notable because it signals a new market low for UST, which dipped to $0.96 in May 2021 during the market volatility.
The development was hours after the Luna Foundation Guard intended to support Terra-based stablecoins and the larger ecosystem around that network. It also disclosed its plan to lend $1.5 billion worth of bitcoin and UST to third-party trading companies to support UST’s peg.
In a tweet at 2:36 p.m. ET, Terraform Labs co-founder Do Kwon voiced his opinion that “Deploying more capital – steady lads.”
The changes also coincide with the overall market instability. According to The Block, Bitcoin’s price plummeted to $30,311.99, boosting the decline that started on Monday. According to TradingView, the current price of Bitcoin on CoinSpot is roughly $30,670.
