Terra is a blockchain payment platform developed by Terraform Labs that powers the startup’s cryptocurrencies and financial apps. These cryptocurrencies include the Terra USD, or UST, which is pegged to the USD through an algorithm.
LUNA, the native token of the Terra blockchain, is up 20% YTD as of 30 Mar, surging to a new all-time high record at around $109.6 with a market cap of $38.98 billion, outperforming Bitcoin (-1.3% YTD) and Ethereum (-10.2% YTD). TerraUSD market cap is also on the rise. Currently, it is ~$16.3 billion market cap, ranking at #14.
In term of Total Value Locked (TVL), Terra (LUNA) has climbed to 2nd rank of TVL on all chains, at $29.11b (12.74% market share). It surpassed Binance Smart Chain (BSC) in December 2021, and has continued to pull away (BSC has 5.72% market share as 30 Mar 2022). The market share dominance momentum remains strong (see chart).
Source: Defi Llama (Terra: Light Green; BSC: Purple)
According to data from StakingRewards, 40.5% of LUNA’s circulating supply is now being staked, allowing token holders to earn rewards for helping secure the network. Current yearly rewards are at 6.8%. LUNA's economics are built to be deflationary. The reduction in supply combined with the popularity of LUNA staking creates a supply shock that could drive up the value.
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Disclaimer: This is for informational purposes only. Nothing here is financial advice.