The Robust Algorithmic Stable Coin Stealing Market Cap from USDT & USDC

Here is why I’m confident Terra is on the right track to bring stablecoins (and crypto) to the masses.

1. Building for everyday transactions

While other ecosystems are focused on creating products for other crypto-nuts, Terra has made it a goal to tailor its products to the everyday normie consumer. With protocols that provide products like high-yielding savings accounts that are capturing the largest share of UST’s market cap, it seems these coins are staked for the long haul.

Not to mention, a payments app that 5% of South Korea is using already. Imagine a debit card that transacts with UST worldwide — that is the future Terra sees with Chai and it is already becoming reality in Korea.

Terra has its aims set for the masses in its development process.

2. Recency and success of 3 protocols

This ecosystem has only just begun to build. When you think about it that way, there is no way this spaceship isn’t destined for the moon. If anything, we should be worried it doesn’t skip straight toward Mars.

Terra has seen massive success — the type that has put it onto the mainstream crypto radar and landed it as high as #15 in market cap with its native coin, LUNA. Like we’ve mentioned already, UST’s market cap of over 2 billion has climbed to nearly 40% of DAI’s market cap in months. And, once more projects are finally launched on Terra, it won’t be long before we set our eyes on catching USDT/USDC.

Terra’s success has come on the back of (mainly) 3 protocols: Anchor, CHAI, and Mirror. There are literally hundreds more in development and they all increase demand for UST. No stablecoin has this kind of structural backbone behind it.

3. Ability to fix itself

Ideally, we would like to say UST is de-peg-proof. However, any bet in crypto is still a risk. As we saw in May of 2021 when UST was de-pegged following the largest crash in crypto history. This warrants discussion.

On May 23rd, UST lost its peg to the dollar and was trading at around $0.95. It briefly dipped to $0.92 but then started to climb back to its even peg within a day.

This type of black swan event will not happen often. It is not likely we will see this kind of crash for years to come. And the next time the market crashes this hard, LUNA and UST (the whole ecosystem, actually) will be much more stable.

It speaks volumes that UST was able to re-peg itself within hours in its relative infancy. If it can withstand a crash of that magnitude, it is bound to handle anything in the future.

Source: https://medium.datadriveninvestor.com/the-robust-algorithmic-stable-coin-stealing-market-cap-from-usdt-usdc-d5e45fccec39?source=rss——-8—————–cryptocurrency