TerraUSD (UST) has lost its dollar peg for the second time in three days, falling as low as $0.98, according to CoinMarketCap's latest price estimates.
On Saturday, Terra had fallen as low as $0.985 before recovering to the $1 level on Sunday.
The algorithmic stablecoin works with its sister token, Luna, to hold the $1 price using a series of on-chain mining and burn mechanisms.
The loss of UST's $1 peg this weekend was neither the first nor the largest "depeg" event in Terra's history, but it was the first time the algorithmic stablecoin slipped below $1 since it began its high-profile attempt to boost its bitcoin and avalanche reserves.
Today's descent comes after the Luna Foundation Guard announced last night that $1.5 billion of its massive bitcoin reserves will be "loaned" to professional market makers to proactively defend the UST's dollar peg.
On CoinDesk TV Monday morning, Swan Bitcoin CEO Cory Klippsten called Terra a "confidence play," responding to the outsized influence of Terra's founders and major backers who are actively working to ensure the currency maintains its peg to the dollar.
This is an evolving story. Check back for updates.