UST becomes the largest decentralized stablecoin by market capitalization – Altcoins Bitcoin News

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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 stablecoin with the largest market value today. UST is now the largest decentralized stablecoin on the market, ending a year of growth in the Terra ecosystem, which is now one of the top ten most valuable cryptocurrency projects on the market.

UST regards DAI as the most valuable decentralized stable currency

UST is one of the stablecoins derived from the Terra project, with Become The most valuable project of its kind calculated by market capitalization replaces DAI, another decentralized stable currency once held. This ended a year of growth in the Terra ecosystem and UST. manage The market value has soared from US$182 million in early 2021 to more than 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 are all centralized stable currencies. Although these operate by depositing collateral to support tokens in the market, UST is an algorithmic stablecoin that uses another token of the Terra Ecosystem (LUNA) to balance its peg to the value of the U.S. dollar.

Other decentralized stablecoins and LUNA are also growing

In the past 30 days, the market value of other decentralized stablecoins has also increased. Tokens such as Frax and MIM have risen by more than 30%, and the market value of FRAX has even reached 40%. These decentralized tokens do not rely on a centralized issuance point, nor can they be blocked by a central authority.

The rise of stablecoins has attracted great attention USDT And USDC faces from RegulatorsSome people believe that these alternative stablecoins will grow further, and users flock to these alternatives for a variety of reasons. But even with so much growth, USDT Still the most used Exchange stablecoins, with more than 68 billion U.S. dollars worth of tokens changing hands yesterday.

The rise of UST also pushed the price of its brother LUNA to the value of ATH. To mint UST, users in the Terra protocol need to burn LUNA, which makes the token more scarce.Luna’s price Rose From slightly more than 0.64 US dollars in January this year to more than 80 US dollars today, it has increased 125 times in less than a year.

Do Kwon, founder and CEO of Terraform Labs Announce He will propose to create a backup for UST in the form of Bitcoin (Bitcoin) And other cryptocurrencies that use token governance methods to protect their pegs from volatility during times of market pressure.

Tags in this story

Cryptocurrency, David, Wear stablecoins, Decentralized stable currency, FRAX, I, Stablecoin, Stablecoin, Earth, Tether, USDC, put, UST stablecoin

What do you think of UST’s use of DAI as the decentralized stable currency with the largest market value? Tell us in the comments section below.

sergio@bitcoin.com'

Sergio Goshenko

Sergio is a cryptocurrency journalist based in Venezuela. He described himself late and entered the crypto space when prices rose in December 2017. With a background in computer engineering, living in Venezuela, and being affected by the cryptocurrency boom at the social level, he offers a different perspective on the success of cryptography and how it can help people without bank accounts and underserved people.

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