This is why the Terra (Luna) price is rising so much

Terra has reached a new high. This happened while almost all Cosmos-based coins have made double-digit gains.

Total value locked exceeds $20 billion

On Tuesday, Terra surpassed the Binance Smart Chain as the second largest DeFi protocol. And today, the LUNA token hit an all-time high of $97.90. Despite only 13 projects built on the Terra ecosystem, the protocol’s total value locked (TVL) has now reached $20.7 billion. This is an increase of 15% in the past day and 64% in the past week.

Terra is a Cosmos-based blockchain for creating algorithmic stablecoins pegged to various fiat currencies, such as the US dollar or the euro.

Increasing activity in projects such as the Anchor savings protocol, whose TVL has grown to $8.8 billion in the last 24 hours, is also positively impacting TerraUSD (UST). TerraUSD is Terra’s US dollar pegged stablecoin.

With a market cap of just $9.4 billion, UST is currently not only the world’s 20th largest cryptocurrency, but also the largest decentralized stablecoin on the market.

Cosmos Coins Rise

According to the founder of Terra named Do Kwon, the rapidly growing demand for UST is the main driving force behind the price increase of more than 60% of the Luna token. kwon said:

“Currently, dozens of projects are in the pipeline and are gearing up for launch in the first quarter of 2022. This could quickly bolster UST demand momentum once it goes live.”

earlier revealed Do Kwon that more than 160 new projects could be launched on Terra by 2020. Among these are the highly anticipated decentralized exchange Astroport and the loan and lending protocol Mars.

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In addition to Terra, other Cosmos-based coins have made double-digit gains in the past day. Cosmos’ own ATOM tolem rose 21% to $27.21. The OSMO token of decentralized exchange Osmosis also rose by more than 10%.

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