Luna Ticks Up
LUNA set a new All Time High (ATH) for the second time in November yesterday, climbing up by about 50% since Friday last week.
There are a few factors behind this move including the Columbus 5 network upgrade in September.
The key points:
Luna is the Terra blockchain’s native token, which is directly coupled with the stablecoin UST. As demand for UST increases, an equal amount of LUNA is burned to help keep the peg.
Maximising the number of use cases for UST across as many different blockchains is a key part of Terra’s strategy.
Bridges are in place allowing the transfer of UST and LUNA between Terra, Ethereum, Solana, Binance Chain and Cosmos blockchains. This creates a lot of liquidity for developers to feed off.
As more dApps and protocols have adopted UST or incentivised the use of LUNA, demand for both has surged in November, resulting in about ~92 million LUNA being burned.
Terra is now the fifth-largest DeFi chain with a Total Value Locked of around $11 billion (or 4% of all DeFi).
To view more analytics on the Terra blockchain check out this dedicated site.
And go here for a more detailed understanding of how LUNA and UST work together or check out this simple video.