LUNA becomes second-biggest network in regards to staked value and over 40% of eligible LUNA is staked on Terra which is giving more staked value than the ETH 2.0 deposit contract so let’s read further in today’s latest altcoin news.
As Terra ascends the ranks of the top ten coins, its popularity as a yield generator continues to soar so now it is the second most staked crypto by value and surpassed Ethereum 2.0. to be clear, the staked value doesn’t refer to the total value locked In the DEFI protocols on the different blockchains. Ethereum dominates in the area with $110 billion locked out of the $200 billion across all of DEFI. Terra remains in 2nd place with $23.7billion in total value locked ont the network which is an all-time high.
When compared to other PoS blockchains, about $28 billion worth of LUNA is devoted to keeping the blockchain in function which makes it the top chain for staking besides Solana where $35 billion worth of SOL is staked. The PoS is a consensus mechanism that helps prevent a blockchain network from becoming spammed with invalid transactions and blocks. It requires users to lock up their crypto for a chance to be selected by the network and validate a block.
If the validator proposes an invalid block, he will lose some of the staked coins and if he presents a block that follows the consensus rules, he is rewarded with the transaction fees that are attached to the block’s transaction. This presents a huge opportunity for crypto holders on PoS networks to earn more passive income by staking coins and creating blocks. The high-value networks that have a lot of activity and transaction fees are quite popular exactly for this use case.
Terra provides a 6.62% annualized reward on the staked coins which is above Solana and ETH 2.0 rewards of 5.93% and 4.81% respectively and these rates can change as the network activity rises and falls or as the value on the network increases or decreases. About 40.65% of Terra is being staked and about three-quarters of SOL are staked on Solana. Ethereum still hasn’t upgraded to Ethereum 2.0 but the deposit contract collected over $25 billion in ETH so far which can be expected to increase after the upgrade that is expected before July this year. As LUNA becomes the second-biggest network, Terra’s price is set at $90.57 with a market cap of $33 billion.
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