- LUNA has outperformed other smart contract tokens by 7:1 according to Messari.
- The wide margin has been due to grounds being gained in adoption by Terra.
- Terra admirers strongly believe that price gains will be sustained.
LUNA, the native token of the Terra blockchain, has been outperforming other smart contracts blockchain tokens by a wide margin. According to data revealed by Messari, LUNA is up by more than 76% in the last 30 days.
In comparison, an aggregate of other smart contract tokens is down 12% in the same time frame. The reason for LUNA’s surge can be tied to two core reasons going by Messari’s stance.
LUNA has planted itself on the moon says Messari
The on-chain data analytics and intelligence platform highlighted the reasons for the impressive run to be: Terra’s adoption of Bitcoin as a reserve asset; and increased usage and fundamentals.
Through Terra’s founder Do Kwon, the blockchain made known that Luna Foundation Guard (LFG) had secured funds to the tune of $3 billion to purchase Bitcoin. Already, one purchase of $125 million has been made, with more to come.
Similarly, the blockchain network has been making huge strides in adoption ecosystem-wide. The total value locked (TVL) on its decentralized finance (DeFi) platforms increased by 49% in 30 days, and 54% in 90 days.
Messari noted that much of this growth has come from Terra’s debt protocols. Around 51% of Terra TVL is in debt protocols, 8% in DEXs, and 36% in staking protocols. Anchor Protocol’s (ANC) TVL grew by $5 billion in 30 days as it attracted deposits seeking its 20% yield.
The blockchain has also been seeing its flagship algorithmic stablecoin – Terra USD (UST) – gain massive traction. The cross-chain decentralized stablecoin has become highly sought after both in the Terra ecosystem and in other blockchains that support it including Fantom.
“UST is the clear decentralized stable frontrunner in several categories: largest supply, fastest-growing circulating supply, fastest-growing usage,” Messari commented. The report concluded that these have been the driving force behind the surge, planting the token on the moon.
Where is the Terra ecosystem headed next?
LUNA is currently trading at around $94.89, down 0.89% on the day. The current price is down 7.12% from an all-time high of $102 reached earlier this month. However, market participants are confident of the token’s price sustaining its gains.
This is due to many key opportunities that “lie in native stables readily available” to be pumped into the ecosystem both by investors and the LFG.
One firm believer in the prospects of the Terra network is its founder, Do Kwon, who recently placed two separate wagers that the price of the blockchain’s native token would be above $88 next year.