According to the data of CoinGecko, UST has a market capitalization of 9.5 billion dollars, a figure that has allowed it to surpass DAI, a stablecoin that has a capitalization of 9 billion dollars.
Theter (USDT) tops the stablecoin rankings with almost $ 78 billion in market capitalization, surpassing the USD Coin (USDC) y Binance USD (BUSD), which have 42.8 and 14.6 billion dollars, respectively.
What is TerraUSD (UST)?
TerraUSD (UST) is the decentralized and algorithmic stablecoin of the Terra blockchain. It is a scalable and profitable currency that is pegged to the value of the US dollar.
The stablecoin was created in order to deliver value to the Terra community, offering a scalability solution for DeFi, interest rate accuracy and cross-chain usage.
A few weeks ago, the Terra community voted in favor of a proposal to burn almost 89 million LUNA tokens, the native cryptocurrency of the Terra network, in a period of two weeks.
In this way, the amount of LUNA to burn, equivalent to about 4.5 billion dollars, would be used to mint more UST, thus representing “one of the largest, if not the largest, of an important Layer 1 asset in the history of the crypto market ”.
TerraUSD’s growth in terms of market capitalization has been meteoric. At the beginning of November, UST’s capitalization was 2.6 billion dollars, so in just over a month, it has more than tripled.
Throughout this year, the stablecoin market has grown significantly, represented one of the most flourishing sectors of the crypto ecosystem.
According to a recent report published by the United States Department of the Treasury, in 2021 there has been a approximately 500% increase in the market capitalization of the largest stablecoin issuers.
The huge impact of stablecoins has drawn attention and criticism from critics and regulators of the crypto space.
Recently senator Elizabeth Warren stated that stablecoins represent risks to consumers and the US economy, this is because it is because “they are supporting one of the darkest parts of the world of cryptocurrencies: DeFi”
In this sense, he stressed that regulators “must take drastic measures seriously before it is too late.”