Recently, a lot has been going on in the DeFi space; from the creation of new DeFi platforms such as “Nested” to the record-breaking feat by Terra (LUNA).
As of March 1 2022, Terra (LUNA) became the second-largest Proof-of-Stake network with respect to staking market cap, according to Staking Rewards (a leading data provider for staking and crypto-growth tools).
For your perusal, Terra is a blockchain protocol that aims to bring DeFi to the masses by utilizing decentralized stable coins.
LUNA surpassed the popular Ethereum 2.0 and is currently behind Solana. As of March 4 2022, the total USD value of staked LUNA was $28,671,837,773 while that of Solana was $35,307,106,566.
Also, DeFi Llama shows the ratio of LUNA’s market cap. to its total value locked (TVL) is 1.43944
Earlier on, there was a massive announcement regarding Terra’s stable coin, TerraUSD. TerraUSD (UST) was to be backed by a $1 billion Bitcoin reserve which possibly led to a price increase in LUNA tokens that made it the second-largest staked asset.
One interesting fact to know about Terra’s stable coin is that it is not directly backed by U.S. dollars but it is still pegged to the dollar.
How?
By employing Terra miners to burn or mint Terra stablecoins and LUNA.
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