Luna Takes 9th spot, 2nd in DeFi. Can it Topple Ethereum?
It has been a heck of a month for Crypto currency and digital assets as a whole with many tokens continuing to swing in side ways direction.
The top three tokens Bitcoin, Ethereum and Binance continue to follow a similar trajectory without much of a break in between leaving investors feeling cold after the peaks that recently provided significant portfolio growth.
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Emerging from the dust Terra's native token Luna has taken a life of it's own commencing 2021 at $US1.00 it is now trading (time of writing) at $US84 per token finding a market of its own.
The news doesn't end there with Terra's native token Luna, it has managed to finally pass Shiba Inu, Dogecoin, Avalanche and Polkadot in an impressive run to 9th position all while fighting off unstakers and sellers. Luna has already created millionaires just this year alone.
A $US1000 investment in Luna in January 2021 would have netted you a minimum of $US84,000 dollars which isn't to bad for a token not many saw emerge.
Luna Surpasses Binance in Decentralise Finance
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Terra Network further defied expectations as it unseated Binance for top spot in Total Value Locked in Decentralised Finance with $US18.24 Billion (at time of writing) locked within the decentralised finance services in it's ecosystem. Binance isn't too far away trailing on $US16.67 Billion Total Value Locked with Ethereum still the dominant Decentralised Finance Protocol with an impressive $US153.56 Billion Total Value Locked across all it's decentralised finance protocols.
Anchor Protocol leads Decentralised Finance
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Anchor continues to be the top Decentralised Finance protocol on the Terra Network offering an impressive 19.46% APY on Terra Networks native stable coin UST. At current Anchor has an impressive $US9.6 Billion dollars Total Value Locked. $US5.4 Billion worth of locked value consists of collateral provided as bLUNA $US4.9 Billion and bETH $US428 Million. With the remaining $US4.1 Billion UST deposited in it's savings vault.
Decentralised Finance Done Differently
Terra Network set out to become the Bank of the Cryptosphere by utilising their algorithmic stable coin that continuously burns Luna to mint UST and vice versa. With the majority of Decentralised Finance on Terra Network requiring bLUNA this drives up the value of the token. You can find out more information about Terra's objectives here
Can Luna Replace Ethereum?
I say this lightly but there is a very real possibility that we could see Terra emerge quite victorious. Perhaps not so much as 2nd spot crypto as a whole yet but it can potentially topple Ethereum in the Decentralised finance world. Terra Network only has around 13 Decentralised Finance protocols where Ethereum has a few hundred.
Terra Network did it's research well prior to launching with one focus in mind, being the leading Decentralised Finance Block Chain and it spent it's days not so much Bridging to other chains but actually being the Bridge and it is growing rapidly.
[source](https://twitter.com/terra_money/status/1471610221822976001?ref_src=twsrc%5Etfw)1/ The first Cosmos-native perpetual LUNA/UST pair is now available for trading on @InjectiveLabs!
— Terra (UST) 🌍 Powered by LUNA 🌕 (@terra_money) December 16, 2021
Users can also access LUNA/UST + UST/USDT spot pairs, with IBC functionality enabling native Terra - Injective transfers directly integrated with your Station wallet 😎 https://t.co/2FkyGiuZBH
An exciting point to make is that a TVL of $US150 Billion would set Luna's token price at around the $US412 mark. Now I don't know what the path towards this is as there are a significant amount of large token hodlers from the $1 days.
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An inspection of the project ALL time chart also shows that there were some significant market dips which indicate that a lot of $1 sellers sold at the $10-$11 mark. Then again at the $29 and $27 followed by $35 and one occurring now at the $84 mark.
So long as Terra continues to grow and it's use cases for bLUNA continue to grow I don't think there will be too much market dips. Especially with the majority of large bags sitting with validators rather than individual investors.
But, it is anyone's guess. What are your thoughts?
Image Sources provided supplemented by CANVA Pro subscription. This is not financial advice and readers are advised to undertake their own research or seek professional financial services
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I don't think anyone will really replace ETH since it is a wealth making machine. No matter how high the fees are, people will only make the trade when the profit is high enough. So while ETH still has the most developers, I don't think LUNA will overtake it anytime.
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Always love reading your Terra takes :)
Those numbers are huge and primarily on the back of an algorithmic stablecoin.
Here on Hive, we're so focussed on Web3 social media and the like, but Terra's UST surely shows what properly promoting our own algorithmic stablecoin could do to the price of HIVE!
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Thank you, there is always something quite exciting occuring on Terra Network that's what makes it so appealing.
Yes Terra's algo stable coin has proved to be quite the success in both bear and bull markets. You can watch the minting of UST and Luna on Terra Stakes website people retain all that money in Terra Network no reason to go outside of it and change into a stable coin from another chain.
I think UST will take top spot next year it is already at 10b just in Anchor.