Terraform Labs’ LUNA is quickly becoming one of the greatest performers in the crypto market, with a rise of nearly 60% in value this month alone, and a burgeoning ecosystem.
A combination of diminishing token supply and a series of modifications in how the coin is used in its own payment network have resulted in network native token gains.
The Terra LUNA network’s decentralized stablecoin UST has exceeded a market valuation of $10 billion, making it the first decentralized stable cryptocurrency to do so.
Stablecoins provide the same value to cryptocurrency investors, traders, and exchanges by keeping the value pegged, delivering a level of stability in a volatile market, and the market cap has increased to over $150 billion from $20 billion a year ago.
The network’s Columbus-5 upgrade in October, which is a new architecture for maintaining stablecoins pegged to their fiat value; anytime UST is generated, LUNA with the equal amount of value is burned, was a huge advance for the LUNA ecosystem.
This has benefited both the UST stablecoin and the LUNA token, which has witnessed an increase in demand as supply decreases, resulting in a price increase.
Despite the growing uncertainty in the crypto market, the token has already profited for seven months in a row.
Following the recent spike in its value, Terra (LUNA) is now the second-largest decentralized finance (DeFi) blockchain with total value locked (TVL) and attaining $20.99 billion.
The network is only second to Ethereum (ETH), which has a TVL of $155.7 billion. According to DeFi Llama, the total TVL of the DeFi market is approximately $257.5 billion.