The Terra protocol is an algorithmic stablecoins running on the Terra blockchain. It is operated in tandem with its native LUNA coin to keep a peg with fiat currencies, like the U.S. dollar.
As stated by industry data, Terra (LUNA), an open-source stablecoin network, struck an all-time high of $20.05 billion in entire value locked, or TVL, across its 13 product offerings. On Dec. 1, Terra’s TVL was at $11.9 billion, illustrating a 68% gain in less than a month. Therefore the platform’s users invest large quantities into the protocol to obtain staking rewards.
The price of LUNA, Terra’s native token, is also steadily trending upwards, trading past $94 with a 31% growth in one week, as stated by Cointelegraph Markets Pro. Hence, the coin now has an entire market capitalization of $34.8 billion, setting it in the top 10 crypto projects.
What Is Terra?
In terms of TVL, Terra is now the second-largest DeFi network below Ethereum and beyond Binance Smart Chain. For consideration, BSC has 225 products in its DeFi ecosystem and a TVL of $16.7 billion, falling all month. In comparison, Ethereum has $155.7 billion in TVL.
Terra is an application-specific blockchain on the Cosmos SDK and Tendermint consensus. Users can stamp U.S. dollar-pegged stablecoins and transform those stablecoins into LUNA, the native staking and governance asset of Terra.
Within the Terra ecosystem, savings protocol Anchor (ANC) is completing the charts for the application with the highest TVL, which at the time of publication is $8.7 billion, as stated by DeFi Llama. Activity within ANC has most likely donated to Terra’s value addition.