DeFi Value On Terra Reached Record $21 Billion As Luna Hit $100

The Defi value on Terra reached a record $21 billion while LUNA reached a new high of $100 and its dip to $85 was erased overnight so let’s take a closer look at our crypto latest news.

LUNA is the native token of the decentralized payments network Terra, which reached $100 on Friday to lead the new “Santa Rally “on the crypto markets. Traders took advantage after Thursday’s drop to 10% which led LUNA to $85 and increase back again during the Asian hours to $96. the announcement by the crypto exchange Binance that it will list UST pushed LUNA above $100 and the price met resistance at the level and got down by 5 cents at press time.

The rising prices caused the total value locked in Defi value on Terra to cross the $21 billion mark according to the data from analytics tool Defi Llama, making it the biggest Defi ecosystem after Etheruem. The figure grew by $3 billion from the previous $18 billion level. Out of the total, over $9 billion is locked on Anchor as a stablecoin-based yield generating application. For TerraSwap, the decentralized exchange built with Terra’s smart contract, its TVL jumped 81% to over $2 billion compared to last week. DeFi protocols rely on smart contracts rather than the middlemen to provide financial services like trading, borrowing, and lending.

The value is split among 13 protocols or over $1.6 billion per protocol which compares with 473 million per protocol on Binance Smart Chain as the third biggest Defi ecosystem that has $17 billion locked on 232 protocols. Marvin Steinberg as the founder of Steinberg invest said:

“A 20% APY [annual percentage yield] on UST deposits through the Anchor Protocol is very appealing because capital flows from price-volatile assets to more risk-averse yield-bearing positions.”

LUNA’s price rise is a part of the broader multimonth rally due to the changes of the token mechanism like the burn feature that decreases the supply and increases the activity on Defi applications that are built on Terra. This eventually propelled LUNA to become the ninth biggest cryptocurrency with a market cap of $36 billion.