Terra’s UST Becomes First Decentralized Stablecoin To Surpass $10B Market Cap

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 embraces UST wholeheartedly, with new protocols integrations popping up quicker than anyone can keep up, leading UST over decentralized rival 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, UST is gaining significant traction among casual stablecoin holders looking to optimize their yield potential and balance 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%).

Anchor is now open to moderate-risk holders of stablecoins. Take a look at how Anchor Protocol has grown in the last months, from both borrowers and depositors.

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Neue Integrations

The rapid rollout of new platform and protocol integrations has been a constant process. 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 is an elastic token that can be deflationary or elasticized with each UST minted.

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.

The LUNA token of Terra Luna has experienced significant growth since December. This is due to the greater acceptance and integration with the UST token in DeFi protocols. Source: LUNA-USD on TradingView.com | Source: LUNA-USD on TradingView.com

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Featured Image from TradingView.com, Charts and Pexels
Disclaimer: The author of this content has not been associated or affiliated to any of these parties. This content is not intended to be financial advice.

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