While Terra network is powered by Luna token, its stablecoin UST is also quickly rising in price. Recently, DeFi traders pushed it to a $10 billion market cap, which placed UST above the value of Binance Smart Chain.
UST Also Surpassed DAI
The UST stablecoin also surpassed its rival DAI and became the largest decentralized stablecoin with a market cap of $10 billion.
For comparison, at the start of 2021, the market capitalization of UST was just about $200 million. In December, UST surpassed MakerDAO’s decentralized stablecoin DAI that had a market cap of about $9.4 million.
In addition, UST became a key stablecoin in Terra’s blockchain, especially in the sector of decentralized finance. In DeFi, stablecoins are crucial for staking, liquidity management, and yield-generating.
When it comes to the Terra LUNA token, it’s also been one of the top performers among all digital assets in 2021. Its market cap reached $34 billion, based on a crypto website Messari.
What’s more, Terra overtook the Binance Smart Chain for second place, based on the total value locked (TVL). TVL is used to compare the DeFi activity on multiple blockchains or individual projects.
However, the Ethereum blockchain remains in the first place, with over $162 billion in DeFi total value locked.