Terra’s total supply of stablecoin UST increased by 7 billion USD in less than 2 months

Terra continued its successful December with stablecoin UST reaching a total supply of 10 billion USD, LUNA price hitting a new high and TVL surpassing Binance Smart Chain.

Terra’s total supply of stablecoin UST increased by 7 billion USD in less than 2 months

After surpassing Dai (DAI) to become the largest decentralized stablecoin in the cryptocurrency market last week, Terra USD (UST) on December 26 has set another new milestone, surpassing total supply threshold of 10 billion USD. For comparison, at the beginning of 2021, the total supply of UST is only about 200 million UST.

Changes in the total supply of UST from the beginning of 2021 to present. Source: CoinMarketCap

TerraUSD (UST) is Terra’s algorithmic stablecoin, whose value is always held at 1 USD but instead of being backed by US dollars, the value of UST is backed by other cryptocurrencies.

UST’s rapid growth in capitalization is due to Terra’s recent proposal in early November to burn $4.5 billion in LUNA tokens to be reissued as UST. Accordingly, the total supply of UST has increased to more than 7 billion USD in less than 60 days.

Recently, UST was also integrated into the Near Protocol (NEAR) ecosystem to promote DeFi liquidity and cooperation between the projects of the two blockchains.

Meanwhile, Terra’s LUNA token also recorded a great December when it increased to more than 100% in value, setting a new ATH peak at $103.60 on December 27. With a market capitalization of more than 33 billion USD, LUNA is currently the 9th largest cryptocurrency in the world.

1D graph of the LUNA/USDT pair on Binance at 10:25 AM on December 28, 2021

Last week, the lockout value (TVL) of projects on Terra at one point reached 20 billion USD, officially dethroning Binance Smart Chain to become the world’s second largest blockchain with TVL.

TVL rankings among major blockchains on the morning of December 28, 2021. Source: DeFi Llama

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By Nguyen Manh Cuong

Nguyen Manh Cuong is the author and founder of the nguyendiep blog. With over 14 years of experience in Online Marketing, he now runs a number of successful websites, and occasionally shares his experience & knowledge on this blog.

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