LUNA Token Hits All-Time High Amid The Booming DeFi Activity

The LUNA token hits all-time high level due to the increased DeFi activity but also it overtook Binance Smart Chain as the second biggest Defi protocol in terms of TVL so let’s read more in our latest altcoin news.

The LUNA token hits all-time high of $88.47 building upon its solid performance over the past week. Despite falling back to $83, LUNA increased by 8.4% over the past 24 hours and a huge 56% gain in the past week according to the CoinGecko data. With a market cap of $31 billion, LUNA is now the ninth-biggest cryptocurrency having surpassed both Polkadot and Avalanche. Terra is a blockchain protocol for creating an algorithmic stablecoin that is pegged to various fiat currencies alongside decentralized finance infrastructure. The network is built using the Cosmos software development kit and LUNA is used to issue stablecoins as well as for paying for the fees and taking part in governance votes.

1/ The on-chain votes for proposals 133 and 134 to burn the 88.675 million Pre-Col-5 $LUNA in the Community Pool (~$4.5 billion), swapping for $UST using the on-chain swap, and reducing the oracle_rewards_pool distribution window from 3 to 2 years have now passed!

— Terra (UST) 🌍 Powered by LUNA 🌕 (@terra_money) November 10, 2021

LUNA’s meteoric rise resulted in the Terra network surpassing the Binance Smart chain in terms of total value locked to become the second biggest Defi protocol behind ETH. There’s a total of $18.06 billion locked in a total of 13-Terra projects compared to the $16.6 billion TVL acorss 225 BSC protocols according to Defi Llama. Topping the charts on the network is Anchor which is a savings protocol boasting the rates of 20% which now has $7.6 billion in tVL. LUNA’s price surge can be attributed to recent developments like adjustments to the Terra protocol’s burn mechanism.

One of them is Columbus 5 whcih is a recent upgrade that introduced a few technological improvements and changed the way that UST is minted. To adjust the project’s upgrade structure, Terra passed the decision to burn 88.675 million tokens from community pools. Terra’s official account said that this represented one of the biggest burns of major layer one assets in the crypto market’s history. The effect of the burn was to make the native crypto scarce and boost the price in the long term. Coupled with the influx of funds into Terra’s DEFI protocols that made the UST the market’s biggest decentralized stablecoin and LUNA’s latest price action suggests that the bets are paying off.