Stablecoins is an indispensable part of the field cryptocurrency 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 Terra (LUNA), protocol blockchain to build a global payment system through the use of fiat-pegged stablecoin TerraUSD (UST).
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 (TVL) spiked on the Terra network.
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.
Crypto project @terra_money ( $LUNA ) has surged 50% in the last week to hit a new all-time high even with bitcoin download 51TP1BILLION— Zack Guzmán (🎄,🎄) (@zGuz) December 2, 2021
Its algorithmically-backed stablecoin $UST has become the largest of its kind and keeps picking up Web3 adoption as THE DeFi dollar
Why that is huge ⬇️ 1/X pic.twitter.com/LSUeA9HgO6
“Cryptocurrency project Terra (LUNA) rallied 50% in the last week to hit an all-time high, even if Bitcoin reduced 5%.
Algorithm-backed stablecoin, its UST has become the largest coin of its kind and continues to receive Web3 acceptance as the dollar DeFi".
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).
Total value locked on Terra reaches ATH
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 Solana, with 12.08 billion USD, while the network Ethereum 1st place boasts a TVL of $164.72 billion and Binance Smart Chain is $22.4 billion.