Token Terra (LUNA) breaks new price record

Charlie Taylor

The Terra (LUNA) algorithmic stablecoin platform reached a new price record this Wednesday (22), following the trend of coins developed by its partner Cosmos, which also registered double-digit gains in the last 24 hours. After surpassing the Binance Smart Chain (BSC) and becoming the second largest protocol for decentralized finance (DeFi) […]

The postToken Terra (LUNA) breaks a new price record first appeared in Bitcoin Portal .

The Terra (LUNA) algorithmic stablecoin platform reached a new price record this Wednesday (22), following the trend of coins developed by its partner Cosmos, which also registered double-digit gains in the last 24 hours.

After surpassing the Binance Smart Chain (BSC) and becoming the second largest decentralized finance protocol ( DeFi ) on Tuesday (21), Terra's LUNA token reached an all-time high of US$97.90.

Right now, the asset operates at a high of 2% in the last 24 hours, worth around US$ 89, according to CoinGecko .

Although there are only 13 projects developed in the Earth's ecosystem, the total value of assets blocked (TVL) in the protocol has just reached US$ 20.5 billion, an increase of 15% in the last day and 64% in the last week, from according to the DeFi Llama .

Terra is a blockchain focused on creating algorithmic stablecoins linked to various fiat currencies, such as the US dollar and the euro. Terra was developed on the Cosmos Network (ATOM), an Inter-Blockchain (IBC) communication protocol launched in February 2022 that aims to create an “Internet of Blockchains”.

Growing activity on projects like the Anchor Savings Protocol, which has seen its TVL grow to $8.8 billion in the past 24 hours, is also having a positive impact on TerraUSD (UST), Earth's dollar-backed stablecoin.

Currently, with a market capitalization of just $9.4 billion, UST is not only the twentieth-largest cryptocurrency in the industry, but also the largest decentralized stablecoin in the market.

Despite its impressive gains, Earth's TVL is still well below the locked-in figure in the popular Ethereum smart contract network, which owns $155.5 billion TVL or nearly 2/3 of the entire DeFi sector.

Rise of coins developed in the Cosmos

According to Do Kwon, founder of Terra, the growing demand for UST in the market is the main driving force responsible for an increase of more than 60% in the price of LUNA in the last week.

“LUNA's price appreciation is a function of the demand for UST through coinage rates,” Kwon told Asia Markets . He suggested that demand for UST could grow in early 2022 before hitting an “inflection point” by the end of next year.

“Currently, dozens of projects are in the audit queue and are preparing for launch in the first quarter of 2022, which could amplify the dynamism in the demand for UST when they are launched”, he said.

Previously, Kwon had revealed that there could be more than 160 new projects being launched on Earth by 2022, including the long-awaited Astroport decentralized exchange (DEX) and the Mars Borrowing and Borrowing Protocol.

Along with Terra, other coins developed in Cosmos performed very well on the last day, as ATOM , Cosmos' own native cryptocurrency , rose 12.9% to US$25, and OSMO, the DEX Osmosis token, rose 12.1% for $5.28.

*Translated and edited by Daniela Pereira do Nascimento with permission from Decrypt.co .

The postToken Terra (LUNA) breaks a new price record first appeared in Bitcoin Portal .

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