Cross-chain integration and growing popularity from of the just a few of the factors behind the recent rally of to a new all-time high (ATH).

is an indispensable part of the field focus and ecosystem DeFi have evolved over the past few years as they provide the liquidity needed by traders to easily swap (swap) into different assets. They also act as a shelter against strong bearish movements like the 25% correction seen on Dec.

A project with a stablecoin component that has seen the price rise to ATH levels despite a stronger bear market than (), protocol to build a global payment system through the use of fiat-pegged stablecoin TerraUSD ().

Data from TradingView shows that since hitting $37.86 on November 26, the price of LUNA has increased by 106% to a new ATH of $78.43 on December 5, as the 24-hour trading volume of it skyrocketed to a record $5.66 billion.

The three reasons for the breakout in the LUNA price include a growing supply of USTs, a bunch of new cross-chain integrations for the Terra ecosystem, and total locked-in value () spiked on the Terra network.

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UST Supply Hits New ATH

One of the key drivers behind the strength seen in LUNA is the rapid growth of the circulating supply of UST, which is currently the largest algorithm-backed stablecoin on the market and ranks fourth by market capitalization. market is $8.22 billion in this area.

Supporters favors decentralized stablecoin options that have adopted the use of UST over its more centralized counterparts USD Coin (), () and USD (BUSD).

“Cryptocurrency project Terra (LUNA) rallied 50% in the last week to hit an all-time high, even if reduced 5%.

Algorithm-backed stablecoin, its UST has become the largest coin of its kind and continues to receive Web3 acceptance as the dollar ".

As the popularity of UST has increased, many in the field have started calling it “DeFi dollar” because it exhibits decentralization and is slowly spreading across the entire multi-chain DeFi (multi-chain). chain).

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Cross-chain integration

LUNA is also available on some cross-chain bridges, making it easier for LUNA holders to invest in the DeFi ecosystem on (), (), () and ().

Total value locked on Terra reaches ATH

The increasing use of LUNA and UST has pushed above Terra reached an ATH of $14.36 billion on December 5, and the LUNA price hit a record high on the same day.

TerraUSD (UST) adoption takes LUNA to new all-time high

TVL on the Terra network | Source: Defi Llama

The rapid rise of TVL led to Terra becoming the top 3 blockchain network in terms of TVL after it surpassed , with 12.08 billion USD, while the network 1st place boasts a TVL of $164.72 billion and Smart Chain is $22.4 billion.

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