Terra Network, a decentralized finance protocol that currently has 73 on-chain projects, has seen its total value locked (TVL) for $LUNA, its native token, grow to over $22 billion as the month of March opened.
With this regained strength amid an industry-wide downturn caused by geopolitical tensions in Eastern Europe between Russia and Ukraine, Terra and its native token $LUNA has managed to outperform other smart contracts-based blockchain networks such as BNB Chain (formerly known as Binance Smart Chain), Fantom, Avalanche, as well as crowd favorite Solana. Among other layer 1 alternatives to Ethereum, Terra has managed to see a price growth to its native token.
This growth can be attributed to two things: first is the announcement from the Luna Foundation Guard that it has successfully raised $1 billion aimed at forming a Bitcoin reserve for the Terra USD ($UST), its stablecoin project. The second reason behind the sustained growth is Terra’s launch of its second lockdrop event, alongside its release of the Mars Protocol, effectively driving demand for the $LUNA token.
In effect, the $1 billion worth of Bitcoin reserves for its stablecoin protocol also paved the way for support to Anchor Protocol, which is Terra Network’s platform for minting UST. It does this through pledges from either $LUNA or $ETH. Similarly, the Anchor Protocol has also announced that it is developing integrations for Avalanche’s $AVAX to be listed as a collateral option for the minting of $UST stablecoins. To date, Anchor Protocol’s $ANC has grown by at least 260%, now running up to $4.3 and plateauing on a major resistance level.
“Now that Columbus-5 is live, more than 60 projects are preparing to launch in the next six to eight weeks, and more than 100 have recently announced plans for the end of the year or early 2022,” shares Terra co-founder Do Kwon, during the launch of Columbus-5, which effectively introduced deflationary pressure for $LUNA and provided better integration with existing or even competing blockchains.
Established in 2018, Terra has helped facilitate and grow the adoption of digital assets, especially given its influence in the decentralized finance (DeFi) sector, where it currently hosts over 73 projects and counting. Its growing ecosystem continues to attract new startups and individual developers building protocols and dApps.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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