Terra’s LUNA Approaches $100 With a New All-time High, Surpasses BSC In DeFi TVL

23. Dec 2021 Posted by Akolkar B on News

The LUNA token by Terraform Labs is hitting a new all-time high (ATH) and is spotted as the ninth-largest crypto asset in market valuation. As of today, the LUNA price has touched an all-time high above $95 and is looking for a move past $100. With the recent price surge, LUNA has also become the ninth-largest cryptocurrency by market cap.

Terra is based on the Ethereum blockchain technology and is now the second-largest blockchain for decentralized finance (DeFi) protocols in reference to the total value locked (TVL) after suffering some plunges the previous week.

Decentralized payments network Terra has been turning heads in the crypto market space as Luna has surged more than 45% in the past seven days. Moreover, it has also overtaken the Binance Smart Chain (BSC) in terms of TVL in DeFi.

Binance Smart Chain (BSC) is a blockchain network built for running smart contract-based applications. It runs in parallel with Binance's native Binance Chain (BC), which enables users to get the best of both worlds: the high transaction capacity of BC and the smart contract functionality of BSC. BSC was the second-largest blockchain network in terms of DeFi TVL for the last few years, but it has been overthrown by Terra protocol with a margin of a few billion dollars.

Terra's TVL was presently around $19.34 billion while BSC was around $16.67 billion on Tuesday. The Terra TVL in defi is 16.01% larger than BSC, and it increased 65.99% during the last week. Earlier this month, Tera also ranked among the top 5 in smart-contract chains by TVL with around $12.6 billion.

One of the main reasons for the surge in the value is because of Luna's advancement to unprecedented growth and improving circulation of Terra protocol's stablecoin UST tokens. Luna's biggest trading pair is tether (USDT) and BTC, with 62.25% and 14.81% trades, respectively.

The global transaction shows LUNA has a strong relationship with BUSD (10.42% of all LUNA trades), BNB (3.49%), USD (3.09%), and KRW (2.55%). According to some reports, Binance, Okex, Kucoin, Huobi Pro, and Bithumb Global are considered the most active exchanges for swapping LUNA. However, Terra protocol's TVL in DeFi has improved significantly. It is no match yet with Ethereum's TVL in DeFi.