DeFi has been exploding recently, and Terra’s stablecoin UST has quickly established itself as a major player in the space, swimming among a sea of centralized tokens like Tether’s USDT and Circle’s USDC.
Terra’s UST Surpassed $10B Market Cap: First Decentralized Stablecoin to do so
DeFi has embraced UST enthusiastically, and new protocol integrations are appearing quicker than anyone can keep up with, propelling UST ahead of decentralized competitor DAI.
Terra’s UST Surpassed $10B Market Cap. Let’s take a look at Terra and UST’s recent progress, as well as what the stablecoin – and the greater Terra Luna ecosystem – might expect in the future.
First and foremost, more casual stablecoin holders who seek to maximize their yield potential while managing platform risk have been flocking to UST. Many have turned to Terra’s Anchor Protocol in recent months for exactly that; Anchor has offered a consistent 19.5 percent continuously compounding yield on UST, whereas CeFi platforms like Celsius or BlockFi have been less aggressive in stablecoin rates (Celsius, for example, reduced its stablecoin yield rates from north of 10% to around 8.5 percent in December).
Anchor has now become a viable option for stablecoin holders who are willing to take moderate risks. Take a look at the increase of depositors and borrowers on the Anchor Protocol platform in recent months:
New platform and protocol integrations are being released at a breakneck speed. Binance rung in the holiday week last week with new UST support for BTC, USDT, and BUSD trading pairs, and our team at NewsBTC did a deep-dive this week on the NEAR Protocol’s support of UST.
Furthermore, UST continues to find new protocol integration throughout the traditional DeFi landscape: Abracadabra has generated a lot of buzzes.
Money’s new “degenbox,” a yield-generating approach that allows users to employ Abracadabra’s now-famous Magic Internet Money to leverage their stablecoin UST (MIM).
Of course, we can’t forget about Astroport, a Terra-based Automated Market Maker (AMM) that is still in its infancy yet has already received over $1 billion in funding. Terra’s native platform token, LUNA, has reached new highs as a result of these advancements. With each UST created, LUNA incurs a $1 USD burn, making it an elastic (though recently deflationary) token.
Check out NewsBTC’s piece from last week on Astroport and LUNA’s recent rising movement for further information. Overall, if Q4 2021 is any indicator, there’s a lot to look forward to in 2022 for LUNA investors, UST yield creators, and Terra Luna viewers alike.
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