LUNA, the Terra network’s native token, reached a new all-time high of $84.47 today; continuing its strong performance over the previous week.
Terra’s LUNA Reaches A New All-time High
Despite falling to $83.40 at the time of writing; LUNA Token is still up by 8.4% in the past 24 hours and an incredible 56% hike in the last seven days, according to CoinGecko statistics.
With a market worth of approximately $31 billion; LUNA Coin has eclipsed both Avalanche (AVAX) and Polkadot (POL) to become the industry’s ninth-largest cryptocurrency.
Terra ( LUNA ) is a blockchain system that enables the creation of algorithmic stablecoins tied to multiple fiat currencies and decentralized finance (DeFi) infrastructure. The Cosmos software development kit is used to build the network; LUNA is used to create stablecoins, pay network fees and participate in governance voting.
Because of LUNA’s spectacular ascent, the Terra network has surpassed Binance Smart Chain (BSC) total value locked (TVL) to become the second-largest DeFi protocol ( Being just behind Ethereum) .
According to Defi Llama, there is currently a total of $18.06 billion locked in 13 Terra-based projects; compared to $16.6 billion TVL spanning as many as 225 BSC protocols.
Anchor; a savings protocol is at the top of the Terra network with a rate of 20% that now has $7.6 billion in TVL.
The spike in LUNA can be ascribed in part to recent advances; such as changes to the Terra protocol’s burn mechanism.
Columbus 5, a recent upgrade that included various technological advancements and modification in the methods: UST—US Terra’s dollar-pegged stablecoin is one of them.
Terra also decided to burn 88.675 million LUNA (worth roughly $4.5 billion at the time) from community pools to alter the project’s structure for the upgrade.
According to Terra’s official Twitter account; “ this was one of the greatest, if not the largest; burns of a significant layer one asset in the history of the crypto market.”
The burn made the native cryptocurrency more scarce, which raised its price in the long run.
When combined with the influx of funds into Terra’s DeFi protocols; which made UST the market’s largest decentralized stablecoin (and the fourth-largest stablecoin overall); LUNA’s recent price action suggests that the bet will be paying off handsomely in near future.