The Next Crypto for DeFi: MakerDao’s DAI Token Competitor Terra Stablecoin UST (TTT) Hit $10 Billion

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terra cryptocurrency

Terra is building a stablecoin and protocol to help businesses and investors transact with each other in a safe, fast, and transparent way. Terra’s tokenized assets can be used as collateral for loans or as an investment against the volatility of crypto markets. Terra is now one of the most valuable crypto projects in the world, as it has secured $18 billion in market capitalization.

  • Luna, the platform’s other token, has reached a market capitalization of over $31 billion.
  • In terms of usage within the DeFi ecosystem, Terra has surpassed MakerDAO’s DAI token, its closest competitor.

The charm of stablecoins has somewhat faded over the past few years. However, open source blockchain platform Terra may be able to change that while reinforcing the role these coins play in the growing decentralised finance ecosystem.

Coingecko, a digital currency analysis website, noted that the platform’s stablecoin – UST – hit $10 billion in market value on Sunday, an almost fivefold surge in its value since January.

Furthermore, DAI has become the second largest decentralised stablecoin after Tether, which hosts the USDT token.

MakerDao is host to DAI, a blockchain-based decentralised autonomous organisation (DAO). DAI’s total market capitalization at the time of writing was $8.9 billion, while Terra’s UST was valued at about $10.1 billion, according to Coingecko’s listings.

The UST actually surpassed DAI earlier this month, but it wasn’t until earlier this week that it surpassed the $10 billion mark. Terra blockchain is proving to be an integral part of the growing DeFi ecosystem. MakerDAO’s DAI platform was launched in January 2018 after about a year of development.

Shocking Report Shows $200 Billion Locked Up In DeFi

Terra’s LUNA token, like UST’s, has performed well as well. Coingecko ranks the token at number nine on their list, and its market capitalization is over $31 billion.

Earlier this year, JPMorgan reported that the total value locked up (TVL) in Ethereum-based DeFi was close to $200 billion, up over ten times since 2020. According to blockchain research platform DeFi Llama, the Terra platform currently has TVL worth $18 billion.

Platforms like Terra make it possible for firms to bypass the volatility of Ethereum and other cryptocurrencies, since their values are tied to the US Dollar and thus don’t fluctuate as rapidly as Bitcoin and Ethereum.

Meanwhile, JPMorgan warned that the growth of DeFi platforms may be overstated due to a valuation effect. “However, this impressive growth in dollar terms is mostly due to a valuation effect, namely the fact that Ethereum prices have surged by 1,000% in the past year,” the bank explained.

Via this site.

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