Terra Climbs to New Highs Becoming the Second-Largest DeFi Network

Terra Climbs to New Highs Becoming the Second-Largest DeFi Network


Key Takeaways

Terra has become the second-largest DeFi network, overtaking Binance Smart Chain.
The network’s native LUNA token has also reached a new all-time high of $84.92.
LUNA’s price appreciation, together with new DeFi protocols on Terra have helped the network reach the number two spot.

Share this article

Terra has overtaken Binance Smart Chain in total value locked, becoming the second-largest DeFi network behind Ethereum. 

Terra Takes Second Rank

DeFi on Terra is booming.

The network surpassed Binance Smart Chain in total value locked in DeFi protocols over the weekend, as its native LUNA token climbed to new all-time highs.

Phemex

Currently, Terra hosts over $18 billion worth of assets across its 13 DeFi protocols. A combination of increasing prices and liquidity from new protocols has propelled the total value locked on the network to the number two spot behind Ethereum. 

Since breaking past its prior all-time high at the end of November, Terra’s LUNA token has soared, recovering quickly while the rest of the market dipped. Today, LUNA shot to a new all-time high of $84.92, putting it up more than 85% over the past month. 

LUNA/USD chart. Source: CoinGecko

The diminishing supply of LUNA tokens on the market is likely pushing the price of LUNA higher. For example, the Terra community voted to burn around 10% of the LUNA token supply worth approximately $4 billion in October. 

Additionally, the increasing demand for UST, Terra’s native, algorithmically-pegged stablecoin, also affects LUNA’s price. UST can be minted by burning $1 worth of LUNA in exchange, decreasing the LUNA supply as more stablecoins are produced. 

While LUNA’s price appreciation has helped Terra become the second-largest DeFi network, the launch of new protocols has also attracted more liquidity. Astroport, a new decentralized exchange launching on Terra, has brought more money into the ecosystem with its highly-anticipated “lockdrop.” 

Users who lock up their liquidity in the protocol will receive ASTRO token airdrops depending on the amount of time they lock up their assets for. So far, over $1.1 billion worth of assets have been committed to Astroport in this way, with more than half of that value consisting of LUNA tokens, further reducing the liquid supply on the market. 

While the total value locked on Terra has increased significantly, other Layer 1 chains have lagged. For example, Binance Smart Chain has failed to break past its previous all-time high total value locked of $31.6 billion achieved in May. 

While other Layer 1s such as Avalanche and Solana have experienced steady growth, they have been unable to keep pace with Terra over the past month. 

Disclosure: At the time of writing this feature, the author owned LUNA and several other cryptocurrencies.

Share this article

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

Terra Enters Price Discovery Mode

Terra is soaring. Further buying pressure could send the Layer 1 blockchain’s LUNA token higher, potentially nullifying any spike in profit-taking. Terra Hits New All-Time Highs Terra has re-entered price…

What is a Crypto Airdrop: Why Projects Airdrop Crypto

Crypto airdrops occur when new tokens are freely distributed to different wallets in order to drive initial growth and build a community. They represent a popular marketing tactic that new projects use to spread…

Terra’s Interoperability Updates Could Help LUNA Soar

Terra is about to see a spike in network adoption as it enables interoperability with other blockchains. The boost in use cases could help push LUNA into higher highs.   Terra…

Terra Is About to Burn 10% of Its Token Supply

Terra’s LUNA token has rallied on the news that a scheduled token burn will remove 10% of the total token supply.  Terra Set for Token Burn  Terra is closing in…



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

You have not selected any currency to display

Pin It on Pinterest