The Terra network has taken off in the past week after an influx of capital poured into the network. However, despite the growth, Terra still has a long moon mission ahead. Covered: Terra Network Flips BSC In TVL LUNA Price Update It's always $luna, isn't it? — The Crypto Dog?? (@TheCryptoDog) December 19, 2021 As […] The post Terra Flips Binance Smart Chain In TVL; Becomes Second Largest DeFi Network appeared first on CryptosRus.

Terra Flips Binance Smart Chain In TVL; Becomes Second Largest DeFi Network

The Terra network has taken off in the past week after an influx of capital poured into the network. However, despite the growth, Terra still has a long moon mission ahead.

Covered:

  • Terra Network Flips BSC In TVL
  • LUNA Price Update

As Bitcoin struggles to find a bottom and slowly bleeds out the overall crypto market, Terra  (LUNA) fans are some of the few holders still in the green. Let’s take a further look at why LUNA is defying gravity.

RECOMMENDED: THREE TOP PROJECTS ON TERRA NETWORK TO KEEP ON YOUR RADAR

Terra Network Flips BSC In TVL

In the past week, it looks like crypto investors poured billions of dollars into the Terra ecosystem. As reported by DefiLlama, Terra’s total value locked (TVL) skyrocketed more than 32% to $16.88 billion, placing it above the Binance Smart Chain (BNB) as the second-largest decentralized finance (DeFi) blockchain.

So money is pouring into the ecosystem, but is that what’s directly causing prices to go up? More users imply more LUNA buying, but these protocols on Terra require UST, the native stablecoin of the Terra network, to operate. UST is unique in that it is algorithmically backed by LUNA tokens rather than a basket of real-world assets. UST is minted as more users onboard Terra DeFi protocols, and an equivalent amount of LUNA is burned. Since my last update on Terra, the UST market cap has risen from $7.5 billion to now over $9 billion.

As supply for LUNA falls whilst demand for UST simultaneously grows, the price of LUNA rises as a result.

I think it’s also important to note that while Terra is sitting at #2, the network still only has 13 active protocols. However, that is set to change in 2022 as Terra has over 160 projects lined up to launch by early next year.

LUNA Price Update

 

Considering the price, the surge in growth of UST has certainly been reflected in the LUNA price. After an initial run to $78, LUNA pulled back to roughly $52 before blasting off again to a new all-time high of $81.08. Currently, LUNA is trading at $77.56.

RECOMMENDED: NFTS AND BLOCKCHAIN GAMING COULD REDEFINE THE PUBLIC PERCEPTION OF CRYPTO, SAYS TERRA CEO

Since August, Luna has been trading roughly between this parallel channel. After one final sell-off in November, Terra’s trading volume has increased steadily, and the crypto asset looks ready for price discovery. However, be wary of a fake-out, as the overall crypto market isn’t looking nearly as strong. If Bitcoin fails to hold the line at $46,000, the LUNA moon mission may get put on hold.

The post Terra Flips Binance Smart Chain In TVL; Becomes Second Largest DeFi Network appeared first on CryptosRus.