Terra’s LUNA Hits New All-time High of $69, Eyes A Spot In the Top-Ten List

Luna token by Terraform Labs is on a ceaseless acceleration, placing itself into the ranks of the largest cryptocurrencies in the crypto ecosystem. Currently, it ranks number 11 on the global charts with a total market cap of $26.2B, trading at $67.91 with a rise of 8.90% in the last 24 hours.

Luna surged about 60% in just the previous week reaching a new all-time high. Tera also ranks among the top 5 in smart-contract chains by TVL with around $12.6 billion.

This accelerated growth is due to changes in how the coin is utilized for its blockchain payments network and confidence regarding the potential for decentralized applications. Terra extends an algorithmic blockchain protocol, which uses fiat-pegged stablecoins to power price-stable global payments systems. This results in linking its value to an asset like the U.S. dollar, supporting a decentralized finance (Defi) ecosystem.

A white paper published titled as "Terra Money: Stability and Adoption" reveals that it will combine the price stability and extensive adoption of fiat currencies with the censorship-resistance of Bitcoin (BTC), which will offer quick and affordable settlements.

Thus, Terra is spotlighted for DeFi innovations, stable coin products, new network upgrades, or Luna staking. Terraform’s LUNA is the latest glittering thing in the crypto ecosystem like Solana and Avalanche were in the past year, where both had observed astronomical gains.

Luna's economics are built to cause economic deflation. Therefore, lately, through a governance proposal, "Luna burn" was executed to destroy nearly 88 million Luna from the community pool, exchanging it for UST, Terra's stablecoin, which results in scarcity and pump up the value of the token. This rarity in supply linked with the new interest of Luna staking (staking provides new tokens) has driven up the value by double.

Brian Curran, communications head at Terraform Labs, said, "Mostly everything we do as a company supporting the Terra ecosystem and third-party projects that build and develop creates more demand for UST, closing the 'demand loop' with many use cases for UST ranging from payments, to savings, and investing." Moreover, he continued, "As a result, Luna's price dynamics are mostly a function of the demand for UST, and by extension, the demand for using UST across various applications and blockchains."

It is speculated that Luna may be receiving support because cross-chain bridges like Wormhole allow Terra to export UST to other blockchain networks.