Back in January 2021, UST had a market cap of $82 million, meaning the token has gained over 12, 000% since the beginning of 2021.
UST’s algorithmic mechanism is linked to Terra’s native cryptocurency, $LUNA, which regualtes the stablecoin’s peg.
LUNA is currently 9th on CoinGecko’s overall rankings trading at $86 as of this writing, reflecting a 15x growth in 2021 and +23% in the last seven days of December 2021.
All this means the Terra blockchain is seeing a lot of action, becoming the second largest DeFi protocol behind Ethereum with nearly $18 billion in total value locked.
Terra is seen as another upcoming competitor to Ethereum because of its stablecoins and incentives it offers to attract DeFi investors.
However, much of the ecosystem’s activity stems from a lending protocol called Anchor that offers 20% annualized percentage yield (APY) to investors and is responsible for half of DeFi activity on Terra.