Terra (LUNA) is now the second-largest decentralized finance (DeFi) blockchain following the latest surge of its total value locked (TVL) to $20.99 billion. The combined TVL of the DeFi market currently stands at $257.5 billion., according to DeFi Llama.
Terra Hits Fresh ATH
The latest resurgence in the price of bitcoin () has triggered a widespread upward surge in the price of various altcoins in the global crypto markets. Decentralized finance ecosystem, Terra (LUNA) has emerged as one of the big winners so far, with its TVL hitting a new all-time high of over $20 billion.
With Luna’s fresh ATH of nearly $21 billion, the project is now the second-biggest decentralized finance network in the world, dwarfed by only Ethereum, which currently has a TVL of $155.7 billion.
In the same vein, Binance Smart Chain (BSC), the DeFi ecosystem of Changpeng Zhao’s Binance exchange is now the third-largest decentralized finance platform, having been displaced by Terra from the second position it held previously.
It’s worth noting that LUNA, the native digital currency of the Terra network has also witnessed a strong rally in recent weeks, hitting an all-time high of $101.50 during the early hours of December 24, 2021.
Terra (LUNA) Powering Price-Stable Payments
Powered by the Cosmos software development kit (SDK) and the Tendermint consensus, the Terra project uses fiat-pegged stablecoins to power price-stable global payments systems. Terra claims to offer users fast and affordable settlements by combining the price stability and wide adoption of fiat monies with the decentralization and censorship resistance of Bitcoin.
In addition to functioning as the governance token of the Terra ecosystem, LUNA is also used to stabilize the price of the supported stablecoins on the network.
The Terra project was launched in January 2018 by Daniel Shin and Do Kwon and since that time, the project has grown to become one of the top blockchain networks in the world.
As reported by BTCManager in September 2021, Terra successfully completed its Columbus-5 upgrade to foster cross-chain interoperability and make the network more robust. At the time of filing this report, the Terra DeFi ecosystem is home to more than 13 protocols with more than 160 more projects gearing to go live on Terra by early 2021.
At press time, the price of LUNA is hovering around $96.35, with a market cap of $35.32 billion, according to CoinMarketCap.