Max E.Thu, Mar 3, 2022 5:40 PM
LUNA Now The Second-Largest Asset in Staking Value
LUNA, Terra’s native token, has become the second-largest asset in staking value. The altcoin has also outperformed Solana and displaced Cardano from 7th place in the CoinMarketCap ranking. Terra ecosystem is now the second-largest smart contract platform in terms of capitalization, not counting Ethereum At the time of writing, LUNA's price is $93.88, its market cap is $35 007 327 270.
On Wednesday, Terra’s TVL (Total Value Locked) was $30.2 billion, surpassing Ethereum’s $28 billion at the time. Prices have settled since then, and at the time of writing, LUNA can boast of its $29.5 billion in terms of value staked across various protocols. Ethereum currently has $27.5 billion in staked value.
BNB Chain has already lost to Terra, falling to third place in terms of the number of TVL investments. However, BNB is still ranked fourth in the CoinMarketCap ranking due to the direct connection between its token and the largest cryptocurrency exchange Binance.
The growth of LUNA is associated with the peculiarity of the ecosystem rules. The token is actively burned during the fall of the cryptocurrency market in collateral pools. Traders “freeze” LUNA in order to issue the TerraUST stablecoin, which holds the excess dollar liquidity from the sale of digital currencies.
UST can be placed on the Anchor protocol of the Terra blockchain during the crisis, at a guaranteed rate of 20% per annum, the highest in the DeFi industry. The stability of payments is guaranteed by a special insurance fund. Terra developers recently supported Anchor with a grant and also invested $1 billion in the UST stabilization fund.
The Terra blockchain is launched on the Anchor platform, which develops the Tendermit protocol for communication between ecosystem networks. Recently, it changed its name to Ignite.
The essence of rebranding is to change the strategy. Now Cosmos plans to attract the attention of not only developers but also users with no coding experience. They will be able to launch their own blockchains or create cross-chain DAOs, collecting assets from different networks into one portfolio.