Under the protection of the dollar
UST tracks the price of the U.S. dollar, so a UST token rounds the dollar and gets its peg to the U.S. currency through the use of the ecosystem's other token, LUNA.
The latter plays a key role in maintaining the price of Terra stablecoins and reduces market volatility so that they remain stable.
In this regard, the price of the LUNA token has experienced a stratospheric rise, as last year it was trading at $0.66 and closed at $89.However, in early March it reached its all-time high of $104.58 as other cryptocurrencies were falling due to the effects of the Ukrainian invasion.
UST's success has allowed it to become the fourth largest stablecoin behind tether (USDT), USD coin (USDC) and Binance USD (BUSD), surpassing $15 billion in market capitalization.
