An Ethereum (ETH) competitor is making big splashes this year, posting big gains and making it into the top ten cryptoassets by market cap. Coin Bureau, on the other hand, predicts that this rise is not over yet and may experience another 50 percent rally.
Terra (Luna)is a network of several fiat-pegged stablecoins used for e-commerce payments and decentralized finance (DeFi) services. The network’s reserve currency, LUNA, supports the price of stablecoins and can be used for payments, investments and savings.
LUNA has risen dramatically this year; The cryptocurrency, which opened 2021 at $ 0.65, reached an all-time high of $ 78.37 on December 4. This represents a gain of more than 11956 percent according to CoinGecko data. Terra’s spectacular performance this year has brought it to a market cap of $27.3 billion, usurping Dogecoin’s place, making LUNA the tenth largest crypto asset.
The coin’s rise in valuation comes right after its parabolic growth in terms of Total Value Locked On-chain (TVL). Data from blockchain insights platform DeFiLlama shows Terra’s TVL has grown from $53.15 million at the start of the year to $13.32 billion at the time of writing, an astonishing nearly 25,000% increase in less than 12 months.
When it comes to TVL, Terra is the third largest blockchain, following Ethereum’s $169.47 billion TVL and Binance Smart Chain’s $16.88 billion TVL.
Coin Bureau’s server, nicknamed Guy, claims that in addition to the crypto asset’s recent protocol upgrade, the demand for stablecoins on the Terra platform is the main driver of the crypto asset’s recent rise in value.
“These dynamics sent LUNA to the moon.
While it saw a minor correction over the weekend, if LUNA can bounce back to $75 in the coming days, a $90 LUNA will come soon.”
At the time of writing, Terra is changing hands at $72.70, up nearly 19 percent in the last 24 hours.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.