Terra is expanding exponentially given the progress witnessed by the decentralized space. This accelerated growth seeped through Terra’s UST stablecoin on the network as its hit a milestone with a $10 billion market capitalization.
Terra founder Do Kwon noted on Twitter,
Data suggested that no other decentralized stablecoin has managed to reach this value. Maker Dao’s DAI stablecoin used to hold the titles of the largest decentralized stablecoin. However, with the current push, UST was fourth among the list of all stablecoins, following Tether [USDT], USD Coin [USDC], and Binance USD [BUSD].
This could indicate the attention UST was receiving from the decentralized finance [DeFi] users.
As per the founder of Terra, Do Kwon demand for UST could increase “rapidly” in early 2022, before reaching an “inflection point” this time next year. Kwon, who had set this year-end target of $10 billion in market cap was reassured of his product. He noted during a recent interview,
“Currently, dozens of projects are in the audit pipeline and are gearing up for launch in the first quarter of 2022, which could amplify UST demand momentum rapidly once live.”
These projects include the much-awaited ‘Astroport’ and ‘Mars Protocol.’ As per Kwon, these will “form foundations of a thriving DeFi ecosystem” and can serve as”liquidity black holes” for UST.
Although Tether’s USDT and Circle-issued USDC remained dominant in the stablecoin market, the growing regulatory scrutiny may offer a way to decentralized stablecoins like UST. UST’s market cap has grown already one-fourth the size of USDC, the stablecoins users and investors may want to keep an eye out for Terra and UST in the new year.