LUNA Skyrockets 20% Amid Rise in DeFi, Staking on Terra

LUNA, the native token behind the fast-growing crypto network Terra, has grown by more than 20% in the last 24 hours.

Cryptocurrencies are currently trading at $ 98.41. This is an important feat given that it was trading for about $ 77 on Monday. Current prices also put LUNA within just 5% of the record high of $ 103.34 seen last December.

Terra is universe Software development kit (SDK). The project has recently received a lot of attention due to the steady rise of the native US dollar base. Stablecoin, UST. LUNA, Terra’s other token, acts as a staking and governance token, allowing users to vote and suggest ways to improve the protocol.

Both tokens are also deeply interconnected.

Every time a $ 1 worth of UST is created, an equivalent amount of LUNA is discarded. The reverse is also true. To create a $ 1 worth of LUNA, the user must discard the $ 1 worth of UST. This mechanism helps to lock the UST to the dollar. Below the pegs, market participants are encouraged to exchange the discounted UST for LUNA. This destroys the UST, reduces supply and, in theory, pushes the value of the UST back to $ 1.

So far, that’s working too.

Steak to DeFi and Terra

UST is the largest decentralized stablecoin in the crypto market (that is, it is not supported by a single entity and its reserves cannot be easily blacklisted or frozen). 4th largest stablecoin overall..

The biggest stablecoin is Tether (USDT) and USD coins (USDT)USDC), Each ordering a market capitalization of $ 80 billion and $ 52 billion, respectively.

After overwhelming price performance, LUNA also Most bet cryptocurrency,passing Ethereum When Solana, According to data drawn from Steaking Rewards. Staking is the process of temporarily freezing cryptocurrencies by locking them within a protocol.

There are countless reasons to do so, but for many investors, the promise of stable compensation is probably the most appealing.

Steak at Terra currently makes over 6.13% revenue, Solana When Ethereum And Solana Lake are 5.8% and 4.8%, respectively.

Terra’s last bullish stats revolves around decentralized finance (DeFi) Activity. Thanks to the rise of LUNA and numerous new applications, Terra has become the second largest DeFi ecosystem of cryptocurrencies after Ethereum.

Currently over $ 28 billion, 11% of DeFi market share, According to DeFi Llama. Conversely, there is over $ 143 billion of sloshing around various Ethereum-based DeFi protocols.

With so many positive indicators rising, the surge in LUNA prices suggests that market participants are currently paying close attention.