Some prominent investors speculate on why the Terras UST is ahead of the Synthetix dollar despite the UST defying DAI’s hegemony as we read more in today’s crypto news.
The algorithmic stablecoin Terra has a market cap of $ 8.5 billion and investors speculate about what drives adoption and how UST has managed to outperform its opponents so far. As the market advances, the decentralized stablecoin sector is expanding rapidly. Taking advantage of unprecedented use, this cryptocurrency is becoming an important part of the ecosystem, as some prominent investors suggest.
Osmosis is the third largest exchange (both CEX and DEX) for $ UST after graduation.
🌊 just the beginning … https://t.co/7z9JJCEYvf
– Osmosis (@osmosiszone) December 8, 2021
The growing proliferation of UST sparked controversy on Twitter when Kyle Samani, co-founder of MultiCoin Capital, asked his followers what differentiates the Terra decentralized stablecoin, especially the sUSDT stablecoin from Synthetix. Terra’s own stablecoin uses Luna as a reserve, and every time someone mines UST, the dollar equivalent of LUNA is burned. LUNA as a native token rose more than 8% among the top 10 cryptocurrencies in the last week, despite the market being in the red. According to coinmarketcap data, UST’s market capitalization has grown by 10.5% and 197% in the same period last month.
While the writing engine merges the two cryptocurrencies into scalable monetary policy, the UST takes advantage of profit opportunities. Raine Watkins states:
“In favor of UST, which other decentralized stablecoins do not have, is that it does not play DAI in its home territory.”
Instead of challenging DAI on Ethereum, UST is trying to build its own ecosystem on Earth and scale multiple chains, Messari said. This is a plan that Do Kwon has implemented without any problems so far. Kwon says the protocol’s own stablecoin could reach a market capitalization of $ 10 billion by the end of the year, and that blockchain development after the COl basic upgrade will aim to maximize interconnection and attract other projects to help leverage for promotion and adoption. STU.
What’s your best theory as to why sUSD didn’t go up like UST did?
– ksam.sol (@KyleSamani) December 8, 2021
Synthethix SNX Management Token is an ERC-20 token that allows synthetic assets to be issued on the Ethereum chain using Minter-dapp, and the price of this token has risen by 109% in the last year after incurring losses of 19%.