Stablecoin Flippening: UST Becomes the Biggest Decentralized Stablecoin By Market Cap

Stablecoin Flippening: UST Becomes the Biggest Decentralized Stablecoin By Market Cap

UST, one of the stablecoins of the Terra project, has become the largest stablecoin by market capitalization today, after having surpassed its Ethereum-based rival, DAI. UST is now the largest decentralized stablecoin in the market, closing a year of growth for the Terra ecosystem, which is now among the most valuable top ten cryptocurrency projects in the market. UST Flips DAI As The Most Valuable Decentralized Stablecoin

UST, one of the stablecoins derived from the Terra project, has become the most valuable project of its kind by market cap, taking the spot that DAI, another decentralized stablecoin, once held. This closes a year of growth for the Terra ecosystem and for UST, which managed to swell from a market capitalization of $182 million at the start of 2021, to more than $9 billion this December.

Now, UST cements its new position as the fourth stablecoin with the most market cap, behind USDT, USDC, and BUSD, all centralized stablecoins. While these work by depositing collateral to back the tokens in the market, UST is an algorithmic stablecoin that uses another token of the Terra ecosystem (LUNA) to balance its peg against the U.S. dollar’s value. Other Decentralized Stablecoins and LUNA Also Grew

In the last 30 days, other decentralized stablecoins have also grown in terms of market cap. Tokens like Frax and MIM, have gained more than 30%, with FRAX even reaching a 40% in terms of market cap. These decentralized tokens do not depend on a centralized point of issuance and cannot be blocked by a central authority.

Due to the heightened attention that the rise of stablecoins like USDT and USDC are facing from regulators, there are some that believe these alternative stablecoins will experience further growth, with users flocking to these alternatives for a number of reasons. But even with all this growth, USDT is still the most used stablecoin on exchanges, with more than $68 billion worth of the token changing hands yesterday.

The rise of UST has also propelled the price of LUNA, its sibling token, to ATH values. To mint UST, users in the Terra protocol need to burn LUNA, and this makes the token more scarce. LUNA’s price rose from a little more than $0.64 this January to more than $80 dollars today, a 125x growth in less than a year.

Do Kwon, founder and CEO of Terraform Labs has declared he will propose to establish a backup for UST in the form of bitcoin (BTC) and other cryptocurrencies using the token governance method, aiming to shield its peg from volatility during stressful times in the market. Tags in this story Cryptocurrency, DAI, Dai Stablecoin, decentralized stablecoins, FRAX, MIM, Stablecoin, Stablecoins, Terra, Tether, USDC, UST, UST Stablecoin

What do you think about UST flipping DAI as the decentralized stablecoin with the biggest market cap? Tell us in the comments section below. Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved. XRP"s Market Price Gains on Upcoming Sologenic Airdrop, XRP Whales Start Moving Millions ALTCOINS | 2 hours ago Swiss Bank Seba Launches Regulated Gold Token, Aims to Bolster "Digital Ownership of Physical Gold" ALTCOINS | 2 days ago

Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleFTX US Partners With Monumental Sports Entertainment, Gets Exposure to 4 New Sports Teams Next articleElement․Black Forms Strategic Partnership With DJ Snake Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItNBA Legend Kevin Durant Joins Coinbase to Help Promote the Crypto Exchange’s Brand

American professional basketball player for the National Basketball Association (NBA) Kevin Durant, is joining Coinbase according to a recent report from Bloomberg. According to the report, Durant will appear as “a face of the brand” and will help promote the ... read more.USDC Sees Native Launch on Avalanche New Cryptocurrency Bill Advances to Senate in Brazil Snoop Dogg, Deadmau5 and NFTs — The Sandbox Alpha Game Review Canaan Secures Order for 30,000 Bitcoin Mining Rigs From Genesis Digital Assets