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Terraform Labs, the group behind stablecoin TerraUSD , have been on the frontline of innovation for quite some time.
In the event that UST deviates from $1, then Bitcoin could be used just like LUNA is now to stabilize the price.
Instead of keeping a reserve of US dollars to maintain stability, like Tether or USDC, the algorithm either adds or destroys LUNA.
When the price of UST begins to increase, LUNA holders can sell their coins for a profit.
If no one wants to exchange their LUNA or UST when prices are out of balance then the stability of UST is at risk.
These purchases represent a milestone for just how far Bitcoin has progressed in the last decade.
These all time highs likely reflect the growing popularity of LUNA as a favorite for DeFi developers.
It is common for memecoins and other cryptocurrencies to rise and fall as they gain and lose popularity.
And best yet, Bitcoin has proven that it might just have what it takes to be the reserve currency for other cryptocurrencies.