Stablecoins are an important part of the centralized crypto sector and decentralized financial (DeFi) ecosystem that have emerged in recent years. One project with a stablecoin component has seen record prices skyrocket. Although a broad market correction is Terra (LUNA).
Since hitting a low of $37.86 on Nov. 26, LUNA’s price has risen 106% to a new all-time high of $78.43 on Dec. 5, and 24-hour trading volume has risen to $5.66 billion.
The reasons for the increase in LUNA prices include the increased supply of UST, the cross-chain for the Terra ecosystem, and the increased total value locked (TVL) in the Terra network.
One of the main drivers behind the strength seen in LUNA is the rapid growth in supply of UST, which is currently the 4th stablecoin in the market with a market cap of $8.221 billion.
LUNA is also available on cross-chain bridges, making it easier for LUNA holders to invest in the DeFi ecosystem on Ethereum (ETH), Solana (SOL), Fantom (FTM), and Polygon (MATIC).
In just 6 weeks, users have sent t$185mm+ of $UST and $LUNA through the @wormholecrypto
. Top destinations? @solana
… Read more here on the proliferation of $UST, powered by @flipsidecrypto bounty program
,
https://t.co/9nWww3dBin
— jack (@forgash_) December 4, 2021
With the increasing use of LUNA and UST, the total locked value on the Terra blockchain hit an all-time high of $14.36 billion on December 5, and the LUNA price hit a new all-time high on the same day.
TVL’s rapid rise has made Terra the third largest blockchain network in terms of TVL after surpassing Solana at $12.08 billion. Meanwhile, the Ethereum network has a $164.72 billion TVL and the Binance Smart Chain has a $22.4 billion TVL.
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