With LUNA breaking through $100, the value of DeFi on Terra soared to $21B

[ad_1]

LUNA is the native token of the decentralized payment network Terra, which soared to more than $100 during European time on Friday, leading the “Santa Rally“In the crypto market.

Traders brought LUNA back to the high of 96 US dollars in early Asian trading before it fell 10% to 85 US dollars on Thursday.Then a announcement Binance, a cryptocurrency exchange, will list UST, a Stablecoin Released on the Terra network, pushing LUNA to over $100. Prices met resistance at this level and fell 5 cents at press time.

Price increase leads to total value lock-in (TVL) Decentralized Finance (DeFi) The agreement on Terra will break the 21 billion U.S. dollar mark, data From the analysis tool DeFi Llama shows, making it the largest DeFi ecosystem after Ethereum. This figure is an increase of nearly 3 billion U.S. dollars from Wednesday’s 18 billion U.S. dollars.

Among them, more than 9 billion U.S. dollars are locked in Anchor, an application that generates revenue based on stablecoins. For TerraSwap, a decentralized exchange built using Terra smart contracts, TVL rose by 81% compared to last week, to more than $2 billion.

TVL's top DeFi protocol on Terra.  (DeFI Alpaca)

The DeFi protocol relies on smart contracts instead of intermediaries to provide financial services such as lending and transactions.

The value is divided into 13 agreements, with an average of more than $1.6 billion per agreement. In contrast, Binance Smart Chain, the third largest DeFi ecosystem, has $73 million per agreement, of which $17 billion is locked in 232 agreements.

Some people say that apps like Anchor increase Terra’s appeal to investors.

“A 20% annual interest rate [annual percentage yield] Marvin Steinberg, the founder of investment company Steinberg Invest, said in a Telegram message with CoinDesk:

The price increase of LUNA is part of a broader multi-month rally, boosted by changes to its token mechanism in November—for example “Burning” function This will periodically reduce supply-and increase the activity of DeFi applications built on Terra. This promotes LUNA as the ninth largest cryptocurrency with a market capitalization of 36 billion U.S. dollars.



[ad_2]

Source link

Recommended For You

About the Author: AZ