DISCLAIMER: This is an opinion piece and in no way represents the opinion of the publication. Nothing in this article should be construed as financial advice. I am heavily invested in $LUNA, $UST, and the Terra ecosystem.

$LUNA reaching $100 and $UST reaching 10b market cap was just the beginning. In fact, it was inevitable. Many have asked me if it’s time to take some profit.

It’s never wrong to take profits, but let me explain why I’m still buying (NFA).

Largest Decentralized Stablecoin

Let's take a quick look at the Top 10 stablecoins by market cap:

Zooming in, we see that $UST is the 4th largest stablecoin and the only truly decentralized stablecoin within the top 5.

What happens when investors start moving away from centralized stables like $USDT, $USDC, $BUSD to avoid regulatory and counter-party risks? You got the hint.

Let’s play devil’s advocate for a moment. What if these centralized coins turn out to be safe from regulation? What else does $UST have going for it?

Adoption

Up until now, the biggest blackhole for $UST has been @anchor_protocol.

Yield Labs 🧪 @YieldLabs

$UST deposits into @anchor_protocol now exceed 5 billion $UST 😯 That’s half of the overall $UST MC 🤩 Billion 1 - 151 days 🐌 Billion 2 - 80 days🚶‍♀️ Billion 3 - 31 days 🛶 Billion 4 - 14 days 🚴🏻 Billion 5 - 7 days 🏍 How long for billion number 6? $LUNA and @terra_money on 🔥

December 27th 2021

61 Retweets287 Likes

It's been 7 days since Anchor reached 4b $UST deposits and it is already at 5b $UST. That's 50% of the 10b $UST in circulation. Insane if you think about it. But we can't depend on Anchor alone to bring $UST to the masses.

What keeps the $UST printer going brrrrr?

Adoption.

What drives adoption? Utility. Use case.

Why ever use fiat again if you can use $UST, $GBT, $EUT, or $SGT? If you think about it, the TAM (total addressable market) of $UST and the other Terra native stablecoins is essentially all the money in the world.

How much is that? Let's take a look:

From the table we can see that there is $95 trillion in broad money supply (M2). But why would people swap their fiat for $UST? They need reasons.

Let's refer to that chart above again and look at the derivatives market.

$1 quadrillion.

Imagine if we could have derivatives on Terra to supercharge terra stablecoin demand. Well you don't have to imagine anymore because there are already a number of protocols launching soon!

Perpetual Futures

Ariel Money 🌕 @ArielProtocol

Introducing @ArielProtocol !! 🚀🚀We see a future where Defi matures as a tool for everyone to use in their everyday lives. Having Perpetual instruments is critical to facilitate this kind of global adoption

December 24th 2021

24 Retweets96 Likes

Options Trading

Sigma Protocol @sig_finance

1/n First came @mirror_protocol 🪞, a kick ass innovation that brought minting and trading of synthetics on the @terra_money blockchain 🌕. It allowed for easy access to price exposure; however, our degen hunger for advanced financial products in DeFi grew. A cute introductory 🧵

September 15th 2021

131 Retweets512 Likes

$WSO_Official @WSO_Options

The World Series of Options p.1 link.medium.com/dxSPLlYjWlb $WSO $LUNA $UST #options #DeFi #cryptocurrecy #ThereWillBeOptionsThe World Series of Options p.1This article is the first of many in this series to introduce an exciting new project launching on the Terra network in 2022!link.medium.com

December 12th 2021

11 Retweets16 Likes

Besides derivatives, there's also the forex market. $6.6 trillion daily turnover. Yup, it's coming to Terra too:

Vertex Protocol @vertex_protocol

The Forex markets are the largest financial market in the world, facilitating over $6 trillion in daily volume. Despite this, there isn’t a decentralised money market to support the adoption of DeFi and currencies beyond the U.S Dollar. Introducing @vertex_protocol A 🧵

December 22nd 2021

159 Retweets433 Likes

If derivatives and the FX market are not for you, worry not. Here’s a thread that I wrote on how you’ll be able to use $UST in the real-world.

ian 🌕 @eeyernlee

We are only at the dawn of the @terra_money ecosystem. $UST adoption is inevitable, so here's how you can (or will be able to) utilize $UST in the real-world 🧵👇 $LUNA $UST

December 22nd 2021

88 Retweets372 Likes

Thus ends my little thesis/rant on why we’re still early for $LUNA. NFA.

No better way to end this but with the words of Do:

Do Kwon 🌕 @stablekwon

Next target: 100,000,000,000 $UST The 🌕 deserves no less

December 22nd 2021

1,065 Retweets5,571 Likes

Follow Me

Twitter

Comment & Earn!

Share your thoughts and opinions on the topics covered within this blog in the comments below for your chance to win yourself an NFT. Click here for more information on our engagement rewards.

Discord | Twitter | Youtube