DeFi Traders Push Terra’s UST Stablecoin to $10B Market Cap

The coin has surpassed Binance Smart Chain in total value locked amid rapid DeFi growth.

AccessTimeIconDec 27, 2021 at 9:50 p.m. UTC
Updated Dec 27, 2021 at 10:01 p.m. UTC

Tracy Wang is a deputy managing editor at CoinDesk. She owns BTC, ETH, MINA, ENS, various stablecoins, and some NFTs.

The Terra blockchain’s fast growing stablecoin UST, which had surpassed its rival DAI to become the largest decentralized stablecoin, has how attained another milestone: a market capitalization of $10 billion.

According to the crypto pricing site CoinGecko, the UST market cap pushed past $10 billion on Sunday. As recently as the beginning of 2021, the market capitalization was under $200 million.

Earlier in December, UST overtook rival MakerDao’s decentralized stablecoin DAI, whose market capitalization sits at around $9.4 billion. And DAI has been live since 2017.

The fast growth in UST comes as the Terra blockchain has become a major player in the decentralized finance (DeFi) sector, where stablecoins play a critical role in staking, liquidity management and yield-generating.

Terra’s LUNA token has been one of the top performers among all digital assets this year, jumping 15-fold in price to a reported market capitalization of $34 billion, according to the crypto data site Messari.

Last week, Terra overtook Binance Smart Chain (BSC) for second place in total value locked (TVL), a metric used to compare the DeFi activity occurring on various blockchains or for individual projects. According to data provider DeFi Llama, Terra boasts $17.9 billion in locked assets, versus $17.3 billion for BSC. The Ethereum blockchain sits comfortably in first place with over $162 billion in DeFi total value locked.

The most popular DeFi project in the Terra ecosystem is Anchor, a lending protocol with nearly $9 billion in TVL, accounting for over half of all DeFi activity on Terra.

A popular trade involves users depositing UST into the Anchor protocol, where the tokens are subsequently pooled and lent out to interest-paying borrowers. The accrued interest is then distributed pro rata to all depositors, who expect to earn an annual percentage yield (APY) of 20%.

According to data from TokenInsights, nearly $3 billion of all UST have been deposited into Anchor.


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Tracy Wang is a deputy managing editor at CoinDesk. She owns BTC, ETH, MINA, ENS, various stablecoins, and some NFTs.

CoinDesk - Unknown

Tracy Wang is a deputy managing editor at CoinDesk. She owns BTC, ETH, MINA, ENS, various stablecoins, and some NFTs.