Terra (LUNA), a multi-sector blockchain protocol, price touched an all-time high (ATH) at US$77.94, when the broader crypto market is in the red. Know why?
Terra (LUNA) has gained over 20% in the last 7-days, especially at a time when the major cryptocurrencies including Bitcoin (BTC), Ethereum (ETH), and many others are in the red. In fact, the price of LUNA (a multi-sector blockchain protocol) touched an all-time high (ATH) at US$77.94 on December 5, 2021. This feat was achieved by LUNA just 2-days after the crypto market witnessed a correction of -25% on December 3, 2021.
Since hitting its 30-day low at US$37.92 on November 26, 2021, the price of LUNA jumped by 106% to its new ATH on December 5, 2021. This happened as the 24-hour trading volume of the altcoin hit a record US$5.66 billion. Terra, the multi-sector blockchain protocol, is using a fiat-pegged stablecoin known as TerraUSD (UST) to build a global payments system.
Analysts have opined that there are 3 reasons for the breakout of the price of LUNA and they are:
TerraUSD (UST) is the market’s largest algorithmically-backed stablecoin. Its market cap is US$8.221 billion, making UST the 4th largest stable coin. Zack Guzmán (@zGuz) tweeted:
“Its algorithmically-backed stablecoin $UST has become the largest of its kind and keeps picking up Web3 adoption as THE DeFi dollar”
Many have already started calling it ‘The DeFi dollar’. It got this name because it:
LUNA hodlers can now invest in a wide array of decentralized finance DeFi ecosystems on:
The day when the LUNA price hit an ATH, the total value locked on the Terra blockchain also reached US$14.36 billion, a new all-time high. In terms of TVL, Terra is the 3rd ranked blockchain network and has comfortably surpassed that of Solana (SOL). Ethereum network and Binance Smart Chain continues to be the largest cryptocurrency project with the highest TVLs of $164.72 billion and US$22.4 billion respectively.