Terra blockchain’s UST stablecoin has been seeing an amazingly fast growth in recent times. Thereby, making it to surpass its rival DAI, and also becoming the largest decentralized stablecoin in the process. However, the UST has now achieved another feat: a market capitalization of $10 billion.
The UST Is The World’s Largest Decentralized Stablecoin
According to data from CoinMarketcap, the UST market cap pushed above the $10 billion mark on Sunday. Interestingly however, that market capitalization was still under $200 million at the beginning of 2021.
Now despite MakerDao’s decentralized stablecoin having been around since 2017, the UST overtook it in early December, in terms of market capitalization. DAI’s market capitalization has been sitting idly at around $9.4 billion.
DeFi Sector Getting Massive Attention
Meanwhile, the fast rate at which the UST is growing might not be unrelated to the Terra blockchain becoming a major stakeholder in the decentralized finance (DeFi) sector.
For instance, its native token — LUNA, has been one of the standout performers amongst all digital assets all year long. And according to crypto datasite Messari, LUNA has leapfrogged about 15-fold in price to hit $34 billion of market capitalization.
Last week also, Terra displaced Binance Smart Chain (BSC) to rank 2nd in terms of total value locked (TVL). DeFi Llama data reveals that Terra boasts of $17.9 billion in locked assets, as opposed to $17.3 billion for BSC. However, Ethereum blockchain sits comfortably at the top of the ranking with over $162 billion in DeFi total value locked.
But the most popular DeFi project in the Terra ecosystem is Anchor — a lending protocol. Anchor accounts for more than half of all DeFi activities on Terra with about $9 billion in TVL.