Terra's UST, the stablecoin on its blockchain, has recently surpassed DAI to become the largest decentralized stablecoin. Moreover, it has reached a significant milestone by achieving a market capitalization of $10 billion.

According to CoinGecko, a prominent cryptocurrency pricing platform, UST crossed the $10 billion mark on Sunday, a substantial leap from its value of barely $200 million at the beginning of 2021.

UST's market capitalization now exceeds that of MakerDao's decentralized stablecoin DAI, which had amassed $9.4 billion. This achievement is remarkable considering that DAI has been in the market since 2017, making UST's ascent noteworthy in the industry.

Terra has been steadily enhancing its position in the DeFi sector, with stablecoins playing a crucial role due to their utility in yield generation, liquidity management, and staking.

UST stands out as the first decentralized stablecoin to reach this milestone, commanding 0.40% of the market. Alongside UST's success, Terra's LUNA token has also experienced significant growth, with its price surging 15x. According to Messari, a crypto data platform, LUNA's market capitalization has reached $34 billion.

Terra's achievements extend beyond UST and LUNA. It recently surpassed Binance Smart Chain to claim the second spot in Total Value Locked (TVL), a metric used to measure decentralized finance activity across networks. According to DeFi LLama, Terra now holds over $17 billion in locked assets, with its flagship DeFi project, Anchor, contributing significantly. Anchor, a lending protocol, boasts a TVL of over $9 billion, covering more than 50% of all decentralized finance activity on Terra.