Terra LUNA Becomes the Second-Largest Staked Token Surpassing Ether

Terra LUNA has recorded significant price gains after having made the smallest comparative losses when the Russia-Ukraine conflict began. The coin gained 28% within 24 hours before surpassing. Ether to become the second-largest Cryptocurrency Income in terms of market capitalization. This rebound was during the time the invasion of Ukraine began. 

Initially, when Russia declared its aggression, the crypto market fell dramatically, with many coins losing 15% on their prices. The market began stabilizing as the U.S. and EU began levying sanctions on Russia. LUNAmade the smallest losses when the invasion began before recovering a staggering 28%.

LUNA Becomes the Second-Largest Crypto in Total Value Staked

When the invasion began, LUNA was priced at around $52.50. Currently, it has almost doubled and is trading at $92.52. It has over $30 billion worth of tokens staked by users from all over the world. These users generate yields of almost 7%.

Some of the key features of this development are as follows:

  • More than $30 billion worth of LUNA is currently staked directly on different platforms. The market capitalization has touched a staggering $34 billion.
  • LUNA users are generating an annual yield at the rate of 6.98%. 
  • Almost 41% of all the eligible tokens are staked.
  • LUNA has 43,000 stakers.
  • Orion.money is the largest staking application supporting LUNA. It has a stake of $2 billion worth of tokens. 
  • The token gained 74% in price during the past week. A strong foundation and positive sentiment among the participants are considered as the key driving factors behind this growth.

About Terra & LUNA

Terra is a blockchain protocol relying on the dollar-based stablecoin UST. The platform is focused on building a global payments system. LUNA is one of Terra’s two tokens. LUNA has been among the top-performing cryptos over the past 2 years. Its value has risen from just $0.12 in March 2020 to $92.52 currently. 

When it comes to crypto technology, staking refers to the process of token holders depositing or locking away a fixed number of tokens in the network. These locked tokens allow these users to become active participants in the network’s operation and they are provided rewards in return. These rewards are also known as ‘yields’. Yields are typically higher than the returns provided by traditional financial institutions on deposits.

Currently, Solana’s SOLis the most staked token. There is $40 billion worth of staked SOLon different platforms. Solana Generates an annual yield of 5.86% for its stakers. While Ether has lost its second position on this list, it is still the largest token in terms of the total value locked on applications developed on its native blockchain. Consider the following stats to understand the scale of Ethereum-based apps:

  • More than $118 billion have been stakedon Ethereum-based apps
  • Terra-based apps have $23 billion have staked on them
  • Solana-based apps have $7 billion have staked on them

Ethereum also gained significant value during this resurgence. It was trading at around $2,336 and is currently priced at around $2,900. 

Rune to Integrate with Terra

While LUNA continues to perform stunningly on the charts, the news of RUNE’s integration with it is also claimed to be a major factor here. This news has especially been exciting for the RUNE community. With this development, LUNA will be integrated into the THORchain protocol. The integration will allow the platform to support Cosmos-based projects.

It is not just the LUNA token that will be getting into the ThorChain ecosystem. TerraUSD stablecoin, UST, will also enter this ecosystem, providing users greater staking and trading options.

Currently, ThorChain supports half a dozen wallet types and 8 blockchains on its decentralized exchange, THORSwap. This is a cross-chain exchange. The platform is also working to provide support for Monero and Haven.

The integration of Terra will involve THORChain being updated through a hard fork. This will get full testing in the testnet. There will be additional testing in Stagenet once the Terra launch ash been completed. Further, there are plans of testing on the ChaosNet before mainnet is launched. Thus, LUNA seems to be holding a lot of future potential. it is expected to continue growing in price on every Bitcoin Trading Platform and deliver greater returns to its users.

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Bizu Yaregal

Feelance journalist and contributor, see my work also at grmdaily

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