Terra is now the second-biggest decentralised finance (DeFi ) player in thecrypto market , after Ethereum.- However, its total value locked (TVL) ratio shows that the cryptocurrency may be overvalued as its current price of $82.04.
- Terra’s
LUNA token hit an all-time-high of $83.81, earlier today.
Moreover, Terra’s LUNA token’s price hit $4 of $83.81 earlier today as it continues to surge. Compared to last year, LUNA’s price is 12,000% percent higher. This means if you had invested ₹10,000 in the token on January 1, it would be worth ₹12,00,000 today.
Top five smart contract platforms by total value locked (TVL):
According to data cited by $4, the total value locked (TVL) in Terra has surged by 55% in the last seven days, overtaking Binance Smart Chain (BNB). TVL is an indicator of how many assets are currently being staked on a specific platform. Simply put, it’s the overall underlying supply.
However, at a price of $82.04 and market capitalisation of $30.48 billion, according to $4, the TVL ratio of Terra comes up to 1.68. This indicates that the recent bull run has left the cryptocurrency overvalued. According to $4, investors will now be looking to book profits, which is likely to push LUNA to lower, but more stable, levels.
As of 3:00pm Indian Standard Time (IST), Terra’s price has jumped by nearly 9% in the last 24 hours with a 44% increase over the last seven days. During the last week, it broke into the top 10 most valued cryptocurrencies in the global market alongside Avalanche’s re-entry.
And, a lot of the credit goes to the hype behind DeFi. Terra UST (UST) is one of the stablecoins — others include the Euro (EUT), the Canadian Dollar (CAT), and the Japanese Yen (JPY) — that’s based on the Terra blockchain. It is now the most valuable decentralised stablecoin in the world after overtaking DAI.
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