UST, the Terra blockchain’s stablecoin, has yet again achieved a milestone – this time a market capitalization of $10 billion. At the beginning of 2021, this stablecoin’s market capitalization was below $200 million. Earlier this month, UST surpassed rival MakerDao’s decentralized stablecoin DAI.
This milestone comes with Terra blockchain getting recognition as a major player in the decentralized finance (DeFi) sector. LUNA is indigenous to the Terra blockchain. The coin is part of an algorithmic balancing system. It helps stablecoins operating on the Terra blockchain maintain parity with traditional currency.
UST and LUNA are co-related. Jeremy Ong, vice-president of business operations at Delphi Digital, had earlier said that as UST demand goes up, the price of LUNA also goes up. He explained that LUNA’s price is a function of UST demand.
Messari, a crypto data site, highlighted that the LUNA token has been one of the top performers among all cryptocurrencies this year. It recorded a 15-fold price to a market capitalization of $34 billion.
The week prior to Christmas, Terra surpassed Binance Smart Chain (BSC) for second place in total value locked (TVL). Analysts define TVL as the total value of the cryptocurrency committed to DeFi protocols. Terra the fifth-largest smart contract platform by TVL, according to DeFi Llama, boasts $17.9 billion in locked assets. The Ethereum blockchain is in the first rank sitting comfortably with over $162 billion in locked assets.
However, Anchor is the most popular DeFi project in Terra blockchain. It is a lending protocol with about $9 billion in TVL.