Terra’s UST Becomes First Decentralized Stablecoin To Surpass $10B Market Cap
December 27 2021 - 7:13PM
NEWSBTC
It’s safe to say that DeFi is booming lately – and Terra’s
stablecoin UST has swiftly emerged as a powerhouse player in DeFi,
swimming among of sea of centralized tokens such as Tether’s USDT
and Circle’s USDC. DeFi is wholeheartedly embracing UST, and new
protocol integrations are popping up faster than most can keep up
with, leading UST to surpass decentralized competitor DAI. Let’s
take a look at the recent growth for Terra and UST, and what we can
expect from the stablecoin – and the broader Terra Luna ecosystem –
looking forward. Terra’s On A Tear Lately… First and foremost, UST
has been gaining substantial traction from more casual stablecoin
holders who want to maximize their yield potential while balancing
platform risk. Terra’s Anchor Protocol has served as a tool that
many have turned to in recent months for exactly that; Anchor has
offered a consistent ~19.5% continually compounding yield on UST
while CeFi platforms like Celsius or BlockFi have been less
aggressive in stablecoin rates (Celsius, for example, reduced it’s
stablecoin yield rates in December from north of 10% to around
8.5%). This has opened the door for moderate-risk stablecoin
holders to give Anchor a try. Just take a look at the growth in
recent months from both depositors and borrowers on the Anchor
Protocol platform: Related Reading | Billionaire Ricardo Salinas:
Forget Fiat, Buy Bitcoin Instead New Integrations New platform and
protocol integrations have been rolling out at a rapid pace. Our
team at NewsBTC covered a deep-dive this week around the NEAR
Protocol’s support of UST, and Binance rang in the holiday week
last week with new UST support for BTC, USDT, and BUSD trading
pairs. Additionally, UST continues to find new protocol integration
across the traditional DeFi landscape: chatter has been abundant
around Abracadabra.Money’s new “degenbox,” a yield-generating
strategy that allows user’s to leverage their stablecoin UST with
Abracadabra’s now infamous Magic Internet Money (MIM). Of course,
we can’t leave out Astroport, a Terra-native Automated Market Maker
(AMM) that is in early stages – but has already fielded over $1B
worth of capital inflows. These developments have led to Terra’s
native platform token, LUNA, to reach record highs. LUNA incurs $1
USD worth of burn with every UST minted, leading it to be an
elastic (but lately, deflationary) token. For more on Astroport and
LUNA’s skyrocketing movement lately, check out NewsBTC’s report
last week around exactly that. In all, if Q4 2021 is any
indication, there’s plenty for LUNA holders, UST yield generators,
and Terra Luna watchers alike to be excited about as we head into
2022. Terra Luna's LUNA token has seen substantial growth in
December, in part fueled by greater adoption and integration of the
UST token throughout DeFi protocols. | Source: LUNA-USD on
TradingView.com Related Reading | UAE Authorities Announce New
Stringent Measures Against Crypto Scammers Featured image from
Pexels, Charts from TradingView.com The writer of this content is
not associated or affiliated with any of the parties mentioned in
this article. This is not financial advice.
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