TerraUSD, also known as UST, has recently surpassed the famous Binance USD in market capitalization. As of the 20th of April, UST has a market cap of $17.7 billion, while BUSD currently boasts a $17.4 billion market cap. Members of the crypto ecosystem strongly believe that Terra’s high yield farming and staking returns offered on several blockchain protocols have contributed to UST’s market valuation growth.
Yield farmers earn as high as 20% APY from staking TerraUSD across various DeFi protocols.
TerraUSD is the stablecoin of the Terra ecosystem, pegged at one dollar. UST’s primary edge over its competitors is the capacity to scale and meet the constantly growing demand for stablecoins in the crypto ecosystem.
At the moment, Tether and USDC are the only stablecoins with a more outstanding market capitalization than UST.
Commenting on the advancement, Do Kwon, the co-founder of the Terra blockchain, said: “Just need to 5x, and web3 gets to run on its own sovereign money. Hold my beer!”
His comment implies that the founders of TerraUSD are still aiming higher. A 5x increase in market cap from here will make UST surpass the largest stablecoin, USDT. Tether (USDT) currently has a market cap of $82 billion and is the third-largest crypto asset, surpassed only by Bitcoin and Ethereum.
UST was launched late in 2020 and has become one of the leading stablecoins. It currently has a 24-hour trading volume of $473 million and ranks 13th among all cryptocurrencies combined.