After becoming the leading non-custodial stablecoin, the Terra ecosystem’s UST stablecoin has made more gains, surpassing $10 billion in market capitalization.
According to CoinGecko, the UST token now holds a market cap of $10.04 billion having already cemented its lead on the DAI stablecoin and rising to the 20th position in overall token rankings.
By surpassing DAI, UST has also become the number 1 “decentralized stablecoin”, that is, one not backed by fiat assets but by cryptocurrencies.
Here is the current list of leading stablecoins and their market caps:
- USDT – $78.1 billion
- USDC – $42.2 billion
- BUSD – $15.0 billion
- UST – $10.04 billion
- DAI – $9.0 billion
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.
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