Stable coin market is almost a $200 billion group based on coinmarketcap stats. Currently leading in market cap are the well known USDT - Tether and USDC - Circle Dollar. What is up and coming is ranked 4th in stable coin by market cap and is overall 14th none other than Terra chain's UST - TerraUSD.
Neither USDT and USDC are decentralized. Yet coming in UST is and Terra Chain is advertising that as the corner stone as to why UST should continue to rise in use and print.
Founder of Binance exchange hinted right before a big announcement on twitter in regards to something that appears to related to stable coins. "titanic sinks" and "untethered". Right after his twit it was soon after announced that Binance would have BTC to UST trading pair in lieu of UST to BTC on its platform.
This is a sign that UST is becoming a core traded token rather than BTC. A big step into accepting and utilizing UST as a whole.
As UST remains actively expanding across multiple platforms, Cosmos, Avalanche, and soon to be Pokadot the stable coin is becoming more and more popular.
Although UST is close to becoming third in market cap for stable coins one other number appears to be small and likely to have potential to rise exponentially. That is the trading volume of UST. To date UST is trading barely $300 million daily while other top stable coins such as Tether and USDC are in the billions. If some day UST can replace top Tether it would make UST exceed over $82 billion in market cap and daily trading volume in the billions.
Though for now UST has its eyes set to overtake Binance BUSD to become third in overall stable coin market cap with less than $200 million for UST to surpass BUSD. This will likely happen over this weekend or early into next week.
In order for the UST pool to grow the counter asset Luna needs to be burned. Surely on a daily basis is Luna being burned and now total supply of Luna is around 733 million.
Meanwhile UST continues to rise on a daily basis. On a longer time frame is is evident that UST is growing rapidly.
As more chains accept and bridge UST it will continue to grow UST total supply. This in turn will allow UST to spread even further into other chains and have a fly wheel effect in growth. As the first leading decentralized stable coin UST stands out from the remaining top leading stable coins. How much longer will it take for UST to actually become first?
None of what I write is financial advice. It is for entertainment purposes only. Thanks for reading!
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