Evening
Terra blockchain is again in the spotlight, as its native stable coin Terra USD, UST has achieved a milestone on Sunday by crossing $10 billion market cap. A few days ago, UST surpassed Maker’s stable coin DAI to become the fourth largest stable coin.
Top three stable coins are Tether's USDT, Circle's USDC and Binance's BUSD with market cap of $78, $42 and $14 billion respectively. UST still has a long way to go as far as USDT and USDC are concerned, but flipping BUSD isn't far fetched, considering Terra blockchain recently surpassed Binance Smart Chain in terms of total value locked(TLV) across all of its protocols.
Top protocol leading Terra's growth is Anchore, a lending protocol with current TLV of $9 billion. Most popular practice among Terra investors is lending UST on Anchore protocol and accruing the interest distributed pro rata to all depositors, with estimated annual percentage yield (APY) of 20%. As of now, around $3 billion worth UST are parked in Anchore protocol.
With uncertainties surrounding centralized stable coins like USDT, USDC and BUSD regarding the assets backing them, it seems decentralized stable coins like UST and DAI are gaining traction as their minting is community governed. But UST especially have seen a prolific growth this year, rising to a current market cap of $10 billion from $200 million at the start of this year. Terra outshined DAI which was launched in 2017, in so little time.
