- Luna has become the second-largest platform for smart contracts.
- The total value locked (TVL) has increased by 55% in the previous week.
Terra’s native token, LUNA, is used to maintain the price of the protocol’s stablecoins. After a four-month streak of rises that have defied the overall altcoin market, Luna has hit a new all-time high of $100. After Ethereum, it has become the second-largest platform for smart contracts.
Stablecoins based on fiat currencies are the currency of choice for Terra, a blockchain technology that provides price-stable global payment networks. Token Holders of LUNA are also able to propose and vote on governance proposals, making it a governance token in its own right.
The total value locked (TVL) has increased by 55% in the previous week. TVL is a statistic used to assess the health of the decentralized finance (DeFi) system by determining how many assets are presently being staked. Primarily, it’s the combined amount of items accessible.
Probable Causes of the Spike
The spike has enabled Luna to surpass Binance Smart Chain (BSC) in terms of total value added. Several things have contributed to the increase in Luna’s price. Terra’s advancement of its burn process might also be a big cause of the price increase. The goal of burning tokens from the community pool was to create scarcity and increase the value of the asset.
Cryptocurrency research firm Delphi Digital says that the negative funding rate on major exchanges shows that there are delta neutral traders, people who take multiple positions to reduce their downside risk. According to CoinMarketCap, Terra price today is $96.26 USD with a 24-hour trading volume of $4,423,870,653 USD. Terra is up 5.35% in the last 24 hours.
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