TL;DR Breakdown
- LUNA has recorded another ATH of $97.90.
- Terra’s TVL is 4 billion more than BSC, making it the 2nd largest DeFi network.
- The altcoins circulating supply has been cut by almost 30 million in a month.
LUNA, the native coin of Terraform Labs is hitting new highs. The algorithmic altcoin is up by 15% in the last 24 hours and 40% in 2 weeks. The altcoin has been breaking all-time highs throughout the week, and now it’s ending towards the $100 price tag.
LUNA is currently the 9th largest cryptocurrency in the market, just sitting below USD stablecoin USDC. After the coin climbed to its previous ATH of $81.08 just 2 days ago, analysts predicted its price to go down as a result of profit-taking and largescale sell-offs. However, investors are being rewarded for their patience, as Terra’s mechanism has helped the token to rocket above the $90 mark.
Why is LUNA pumping?
The altcoin has soared all month while the entire crypto market was down. Terra surpassed Binance Smart Chain (BSC) in TVL (total value locked), becoming the 2nd-largest DeFi network behind Ethereum. Terra currently has $20.63 billion locked on its blockchain, which is almost 4 billion more than the Binance Smart Chain.
This is Terra’s largest TVL to date, which indicates that investors are constantly holding assets in the blockchain. Terra’s burn rate of the token is also exceptional. LUNA’s circulating supply has been reduced by almost 30 million in a month amidst its growing demand in the network. This is the key driver behind the coin’s soaring price.
Terra is also burning $4.5 billion worth LUNA on every 800 blocks produced to simplify its economics and boost staking rewards. So, these are the driving factors behind the altcoins exceptional climb recently.
Earlier today, LUNA recorded its latest all-time high of $97.90. The token is currently trading at $95.21, with the $100 milestone looking imminent.
