Terra's LUNA reaches a new all-time high, while Cosmos Coins gain double digits.

 En raison de ce biseau ascendant, LUNA pourrait faire face à une vente de  46%. – KogoCrypto - ThePressFree

Terra, an algorithmic stablecoin, has reached a new all-time high, while other Cosmos-based coins have had double-digit rises in the last day.

Terra's LUNA token hit an all-time high of $97.90 today, after surpassing Binance Smart Chain as the second-largest decentralised finance (DeFi) network on Tuesday. According to CoinGecko, LUNA is currently trading at little over $95, up 12.8 percent on the day.

DefiLlama reports that despite only 13 enterprises being created on the Terra ecosystem, the total value of assets locked (TVL) in the protocol has now reached $20.7 billion, up 15% in the last day and 64% in the last week.

 

Terra is a Cosmos-based blockchain that allows users to create algorithmic stablecoins that are pegged to fiat currencies like the US dollar or the euro. After topping Binance Smart Chain on Tuesday, it became the second-largest DeFi protocol in terms of TVL.

Increased interest in projects like Anchor's savings protocol, which saw its TVL rise to $8.8 billion in the previous 24 hours, is also helping TerraUSD (UST), Terra's dollar-pegged stablecoin.

UST is not only the world's 20th largest crypto asset, but also the market's largest decentralised stablecoin, with a market valuation of just $9.4 billion.

Despite its significant advances, Terra's TVL still behind Ethereum, the industry's most popular smart contract platform, which has $155.5 billion in TVL, accounting for over two-thirds of the DeFi sector.


Cosmos coins surge

The key driver for a more than 60% increase in the price of Terra's LUNA token over the last week, according to Terra founder Do Kwon, is fast expanding demand for UST.

"The demand for UST via seigniorage is a result of LUNA's price appreciation," Kwon told Asia Markets. He predicted that UST demand will increase in early 2022 before reaching a "inflection point" by the end of the year.

"At the moment, dozens of projects are in the audit pipeline and are on track to launch in the first quarter of 2022, which could quickly accelerate UST demand momentum once operational," Kwon said.

Do Kwon previously stated that over 160 new applications might launch on Terra in 2020, including the much-anticipated decentralised exchange Astroport and the borrowing and lending protocol Mars.

Alongside Terra, other Cosmos-based coins have enjoyed double-digit gains in the last day, with Cosmos' own ATOM up 10.8% to $25.52, and OSMO, the token of decentralized exchange (DEX) Osmosis up 13.0% to $5.32.

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