Despite recent market instability, Terra’s native cryptocurrency, LUNA, has seen a robust surge. The LUNA cryptocurrency is aiming for a new all-time high, and it is presently trading 7.5 percent higher at $95.36 with a market capitalization of $35.7 billion.
According to the most recent data from staking incentives, Terra’s LUNA has overtaken giants like Ethereum 2.0 to become the second-largest Proof-of-Stake (PoS) network.
Terra’s LUNA has emerged as a strong competitor to Ethereum with growing demand among DeFi protocols. Terra LUNA, on the other hand, trails Ethereum in terms of total value locked (TVL), which is presently $23.7 billion.
Among the top ten cryptocurrencies, LUNA has gained the most in the last week, with a rise of 77 percent. It has surpassed giants like Solana (SOL), Cardano (ADA), and Avalanche to become the seventh-largest cryptocurrency by market capitalization (AVAX).
So, why is the LUNA price so high?
Last week, the Luna Foundation Guard (LFG) announced a LUNA cryptocurrency over-the-counter sale. This investment, according to the Luna Foundation, will be used to “create a Bitcoin-denominated Forex Reserve for UST.
“Although the widespread adoption of UST as a consistently stable asset through market volatility should already refute this,” LFG explained, “a decentralized Reserve can provide an additional avenue to maintain the peg in contractionary cycles, reducing the system’s reflexivity.”
Terra is also on track to cut into Ethereum’s Defi market cap. In such a short amount of time, the Terra ecosystem now hosts 13 Defi protocols. This year, a large number of Defi protocols are expected to enter the Terra ecosystem. LUNA’s price has also risen due to the burning mechanism of Terra’s native stablecoin, UST.
The post-Terra’s LUNA Dethrones Ethereum 2.0 as the Second Most Valuable Cryptocurrency by Staking Market Cap was originally published on CoinGape.