The building security ust business value that surpasses decorating

The competition in the stable industry burned from the center to the decentralized areas, and the conflict situation changed.

According to Coingecko data from December 23, the market value of UST Fixed Income was $ 9.479 billion, similarly exceeding the DAI market value of $ 9.035 billion. UST is developed by the Terra blockchain network, and DAI is the largest decentralized stable currency in the Ethereum network.

UST's increase in market value placed it in fourth place for stable market results. The “top three” are always halfway: Tether's USDT, Circle's USDT, and Binance Ecosystem's BUSD.

According to a new report from the Research Institute, total property, plant and equipment rose from $ 29 billion in 2021 to more than $ 140 billion, up 388% from the previous year. UST is not included in the statistics, so the market capitalization of current fixed income securities will be higher than the statistics. Some believe that DeFi and its derivatives are important for the growth of stable applications.

Regulators, especially under US law, have not eased interest in stability coins. A 2021 congressional report released by the U.S. Federal Reserve on Friday pointed out that the strong U.S. stance on the coin is more protective than the exchange rate.

UST market value increases Terra TVL channel compared to BSC channel

Currently, stablecoins are regulated by the USDT and the USDC. Both are offered by intermediary companies, and fixed assets such as US Treasuries, cash and corporate bonds are pegged to the value of the US dollar.

According to data from CoinGecko, the USDT provided by Tether now accounts for over 60% of total securities deposited in all crypto-assets, including securities with a market value of $ 77.4 billion, taking the first up the list. The USDC cycle-based company came in second with a market value of around $ 42.6 billion, while the other, matching Binance's revenue, BUSD, came in second with a value of $ 14.7 billion market.

Volatility also occurs when the coin, the fourth and fifth largest currency by market cap, is acquired through trading. UST, the TerraChain-based security currency pegged to the US dollar, topped DAI in fourth place in the market rankings for stable currency prices.

UST Business Administration announces DAI

It should be noted that DAI is the oldest stable currency on the market based on the MakerDao protocol of the Ethereum network. Whether it is a commodity or a market price, DAI has always been the king of the stable financial industry. Today, "Crown" has changed hands, and now the market value of UST is around $ 9.4 billion and DAI is around $ 9 billion.

Centrally provides stable coins containing traditional retention-based financial instruments, making it easy to manage the 1: 1 peg to the US dollar, while UST and DAI support decentralized stability coins from 'crypto assets due to liability. Volatile cryptocurrencies form the underlying asset, and the emergence of decentralized stability coins under extreme market conditions could lead to a rapid sell-off that decouples them from the value of the US dollar.

In terms of market value and market demand for smart chain contracts, decentralized stability coins grow and expand, and their chain market value continues to increase with the river. One example is the Terra chain, the UST standard. The channel's only 13 apps that closed more than $ 18 billion worth of TVL crypto assets (the total amount of crypto assets closed on the channel) went through public channel Unicorn BSC.

According to the December 21 analysis of DeFi Llama equipment data, the Terra channel's TVL exceeded $ 18.2 billion, the average TVL of each application in the channel exceeded $ 1.4 billion, and the TVL BSC chain protocol average is 73. $ 165 million in crypto assets are closed in 225 contracts.

The increase in the Terra Channel's TVL coincides with the increase in the LUNA control token. According to data from CoinGecko, LUNA has gained 48.5% in the past 7 days, surpassing the new high of $ 97.9 on December 22, bringing LUNA all market value into the 10th (9th) rankings of the market values ​​of active. Stablecoin Luna 7th by capitalization market.

Although some argue that the increase in the market value of LUNA is due to its token process and its use in the DeFi app, Adrian Krion, CEO of web game company 3 Spielworks, said that the commercial apps of LUNA are usually driven by UST applications. UST must burn LUNA. By Terra Chain.

According to Adrian Krion, the market demand for stable UST earnings led to the deflation of LUNA, which resulted in a significant increase in the market value of UST and LUNA.

DeFi and its derivatives increase the stability of the bitcoin supply by 388%.

In its "Digital Asset Prospects for 2022" report, Block Research notes that total fixed assets rose from $ 29 billion to over $ 140 billion at the start of 2021, up from 388% last year.

In addition, in 2021, the annual volume of fixed exchanges (moving from one part of the chain to another) exceeded $ 5,000 billion, an increase of more than 370% compared to 2020.

Research Report: Stablecoin Trading Took Many Years

There are several reasons for the increase in fixed income securities. For crypto-asset companies, securities are a viable option in many cryptocurrency markets.

In 2021, more investors will enter the fixed coin market in the financial management (DeFi) process of multiple chains, creating new applications for fixed currency. Traders can trade new assets on a decentralized DEX trading application, use fixed income securities as a commodity and borrow against other arbitrage assets, or combine fixed assets with other tools to gain new value at from profitable products.

DeFi provides a new market for stable coins and makes it easy to trade medium to high stable currencies.

Besides DeFi, commercial derivatives are a key driver of fixed income growth.

Paolo Ardoino of Tether pointed out that most of the benefits of crypto assets (futures, options, etc.) are determined by fixed earnings. Circle CEO Jeremy Allaire predicts that 2022 will be a year of stablecoin trading, and more organizations and individuals want to hold stablecoins, demand, including use of payment, will not be seen.

However, Blockchain research also indicates that the market will be under further scrutiny in 2021. In terms of oversight and scrutiny, the United States is particularly wary of fixed coin prices, and the The administration reiterated its threats against the US economy.

Senator Elizabeth Warren said: “In times of financial crisis, people are more likely to acquire high-risk financial assets and convert them into real US money. It can affect our entire economy.

The Treasury Board, the main agency that oversees the US Treasury's financial system, warns that these stablecoins are often sold in a way to “recover” the money the maker still has, ”saying the property promises a stable. , when investors do not trust their trust, the "stable coin" can be bought out massively and withdrawn, which can lead to similar problems for the deposit treasury bank, hurting consumers and the economy in the bank. whole. It can hurt you.