Stable currency rollover: UST has become the most important decentralized stable currency in market capitalization

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UST is one of the stablecoins of the Terra project. After surpassing its Ethereum-based rival DAI, it has become the most important stablecoin today. UST is currently the most important suburban stablecoin on the market, ending a year of growth for the Terra project, which is currently one of the 10 most valuable cryptocurrencies on the market.

UST Flips DAI because of the most valuable decentralized stablecoin

UST is one of the stablecoins derived from the Terra project and has become the project with the highest market value among similar projects, replacing the position once held by another suburban stablecoin DAI. This ended the Terra program and UST’s one-year growth, successfully growing from US$182 million in early 2021 to US$9 billion in December this year.

Now, UST has consolidated its new position as the fourth stablecoin with the highest market value, second only to USDT, USDC and BUSD, all centralized stablecoins. Although these operate by depositing collateral to support tokens in the market, UST is an algorithmic stablecoin that uses another token from the Terra Project (LUNA) to balance its peg to the dollar price.

Other decentralized stablecoins and LUNA grow together

Over the past thirty days, alternative suburban stablecoins have matured together in terms of market value. Tokens such as Frax and MIM rose by 30%, and the market value of FRAX even reached 40%.These decentralized tokens do not depend on the purpose of centralized issuance, nor can they

Blocked by the central authorities.

As the increase in stablecoins such as USDT and USDC has received great attention from regulators, some people believe that these different stablecoins can achieve additional growth, and users flock to these alternatives for various reasons. However, even with these growth, USDT is still the most commonly used stable currency on exchanges, and the price of tokens in dynamic hands was as high as 68 billion US dollars yesterday.

The rise of UST jointly promoted the value of the Roman god, that is, its relative symbol, and reached the value of ATH. In order to mint UST, users within the Terra protocol must be forced to burn the Roman gods, which makes the token very scarce. The value of LUNA has risen from US$0.64 in January this year to US$80 today, an increase of 125 times in just one year.

Do Kwon, the founder and head of business of Terraform Labs, announced that he can propose to use token governance methods to determine the backup of UST in Bitcoin (BTC) and alternative cryptocurrencies, and plans to protect its pegs from volatility affecting the market throughout the nervous tension. Inside.

Post Stable currency rollover: UST has become the most important decentralized stable currency in market capitalization First appeared in Bitcoin wire.

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