Since December 1, Terra’s TVL increased by 68%, hitting an all-time high of $20.05 billion. As a result, Terra is currently the second-largest DeFi player on the crypto market. It follows only Ethereum and has overtaken Binance Smart Chain.
On Thursday, DeFi network Terra (LUNA) hit its all-time high of $83.81, with its total value locked (TVL) surging and overtaking Binance Smart Chain (BNB). Now, LUNA is the second-largest smart contract platform, surpassed only by Ethereum (ETH). Its price is jumping further, with the market cap growing as well. As of the press moment, LUNA is trading at $100.35, its market cap has totaled $36.8 billion.
This December has been one of the best months for Terra’s native LUNA currency. It has nearly doubled this month, extending a four-month winning trend. One of the key contributors to the LUNA price hike is the growing DeFi ecosystem which has significantly contributed to the growth of the Terra platform. Besides, the credit for such a performance goes to Terra’s deployment of Astroport, an Automated Market Maker (AMM). The protocol is yet in an early phase but has already seen over $1 billion in capital inflows.
Analytics firm Delphi Digital said:
“The price increase over the last few days was likely triggered by investors buying spot LUNA to lock up in the Astroport lockdrop, then hedging their position via perpetual futures to remain delta neutral.”
Other improvements on Terra’s mainnet employed within the past months included Colombus-5, Wormhole v2, and an Inter-Blockchain Communication (IBC) protocol. All of these upgrades have also become triggers for LUNA’s incredible price rally.
LUNA Becomes the 2nd-Largest DeFi Network
Along with soaring LUNA price, Terra has seen its total value locked (TVL) surging by more than 55% in the last seven days and leaving behind Binance Smart Chain. Total value locked indicates the number of assets being staked in a specific protocol. It does not represent the number of outstanding loans, however, it shows the total amount of underlying supply that is being secured by a specific application by DeFi completely.
On December 1, Terra’s TVL was at $11.9 billion. Since then, just in a couple of weeks, it increased by 68%, hitting an all-time high of $20.05 billion. As a result, Terra is currently the second-largest DeFi player on the crypto market. It follows only Ethereum and has overtaken Binance Smart Chain.
For comparison, Ethereum’s total value locked makes up $155.7 billion, while BNB’s TVL is $16.7 billion.
In 2022, LUNA is expected to soar further and hit new highs. Analysts and experts are giving different estimates of the coin’s prospects. For example, Wallet Investor is bullish on the long-term outlook, forecasting that the LUNA price could reach $176.97 by the end of 2022. Price Prediction firm says that LUNA’s price is put at an average of $86.73 in 2022, $266.04 by 2025 and $1,722.49 by 2030. A famous crypto analyst and trader Michaël van de Poppe believes there are two key levels LUNA can hit. In particular, they are $125 and $200. And taking into consideration its current performance, the first mark is very close.