Just-In: Terra (LUNA) Total Value Locked Soars To $31 Billion

By Olivia Brooke
LUNC News: TGF Submits Terra Classic Recovery Proposal 10946

Terra’s TVL surges 17% within 7 days to hit $31 Billion. The Terra (LUNA) decentralized finance (DeFi) ecosystem has been a hub of activity recently. In the last seven days, the total value locked (TVL) of Terra’s DeFi ecosystem surged 17% to reach a new all-time high of a whopping $31 billion.

Advertisement
Advertisement

Terra plays for all-round DeFi dominance

Per data from DefiLlama, Terra ranks as the second-largest blockchain by TVL and now accounts for around 11.88%, behind only Ethereum.

Terral Luna TVL above $30 B

Img Source: DefiLama

Individually, Terra’s DeFi protocols have been having an impressive run. Anchor Protocol (ANC) grew to become the biggest lending protocol in the blockchain industry during the period, surpassing the Ethereum-based Aave (AAVE). Anchor Protocol’s TVL sits at around $15.73 billion as it has attracted deposits with its high APR of 20%.

Also driving Terra’s TVL surge is its flagship dollar-pegged algorithmic stablecoin, Terra USD (UST). Terra has adopted Bitcoin as a reserve currency for the stablecoin. LUNA Foundation Guard (LFG) has acquired over $1.4 billion worth of Bitcoin in a short period. LFG has the lofty target of owing $10 billion worth of Bitcoin in the long term.

Do Kwon, the founder of Terra and CEO of Terraform Labs (TFL), has revealed that he envisions UST becoming the de facto decentralized stablecoin across the entire crypto industry.

The goal is not to become the largest stablecoin on the Terra blockchain, so we expand to say the Solana, Avalanche, Ethereum, and Polygon ecosystems. We plan to be everywhere where there are developers and users,  he said in a recent interview.

Consequently, the serial blockchain entrepreneur has recently revealed a new liquidity pool on the Ethereum-based exchange liquidity pool, Curve. Named the 4pool, it is composed of UST, FRAX, USDC, and USDT as noted by a blog post by Ezaan, a member of TFL. By allying with Frax, Terra hopes to gain a competitive edge over DAI.

LUNA surges to new ATH

The native token of the Terra blockchain, LUNA, has been a beneficiary of the growing DeFi ecosystem dominance. LUNA hit a new ATH of $117.91 yesterday according to CoinMarketCap.

LUNA is currently trading at around $114, down 1.61% in the last 24 hours. However, it is up 19.5% in the last week.

Advertisement
Olivia Brooke
Olivia’s interests spans across the Cryptocurrency and NFT and DeFi industry. She remains as fascinated by cryptocurrencies today, as she was back in 2017, when she first started reading up about them.
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.