After a massive correction and bloodbath on late Friday, December 3, the crypto market is showing signs of recovery. However, the fastest to recover has been Terraform Labs’ native cryptocurrency LUNA.
As of press time, LUNA is trading 32% higher at a price of $72.71 with a market cap of $27.8 billion. This has helped LUNA to enter the list of top ten cryptocurrencies by market cap toppling the meme cryptocurrency Dogecoin (DOGE) for the #10 spot.
The LUNA cryptocurrency has been outperforming Bitcoin over the last few weeks. It has gained more than 64% against Bitcoin on the weekly charts.
As CoinGape reported, the LUNA price rally comes amid the growing use of LUNA coins in decentralized finance (DeFi) applications. Furthermore, there’s a sharp surge in the development activity taking place on the Terra blockchain.
Terra’s Growth In the DeFi Space
The Terra blockchain is slowly emerging as one of the most sought-after platforms in the decentralized finance (DeFi) space. The Terra protocol works on an algorithm of deploying fiat-pegged stablecoins useful in a decentralized finance (DeFi) ecosystem. Terraform’s DeFi ecosystem includes popular apps like Pylon, Mirror, and Anchor.
Furthermore, as explained by DeFi Llama, Terra is the third-largest blockchain in total-value-locked (TVL). Along with the Terra (LUNA) price, the total value locked on the platform has reached a new all-time high at $13.86 billion. In terms of TVL, Terra is currently third after Ethereum and Solana. As popular crypto-journalist WuBlockchain explains:
According to DeFi Llama, TVL on the Terra continues to hit new highs, surpassing Avalanche and Solana to rank third. In the past 7d, Terra-TVL has grown 42.9%. Terra Token Luna also quickly recovered the decline and set a new high.
These are clear signs that Terra is emerging as a dominating force in the DeFi space. It will be interesting to see if Terra can make further gains and surge past Solana in terms of market cap.