It has been a heck of a month for Crypto currency and digital assets as a whole with many tokens continuing to swing in side ways direction.
The top three tokens Bitcoin, Ethereum and Binance continue to follow a similar trajectory without much of a break in between leaving investors feeling cold after the peaks that recently provided significant portfolio growth.
Image Source
Emerging from the dust Terra's native token Luna has taken a life of it's own commencing 2021 at $US1.00 it is now trading (time of writing) at $US84 per token finding a market of its own.
The news doesn't end there with Terra's native token Luna, it has managed to finally pass Shiba Inu, Dogecoin, Avalanche and Polkadot in an impressive run to 9th position all while fighting off unstakers and sellers. Luna has already created millionaires just this year alone.
A $US1000 investment in Luna in January 2021 would have netted you a minimum of $US84,000 dollars which isn't to bad for a token not many saw emerge.
Luna Surpasses Binance in Decentralise Finance
Image Source
Terra Network further defied expectations as it unseated Binance for top spot in Total Value Locked in Decentralised Finance with $US18.24 Billion (at time of writing) locked within the decentralised finance services in it's ecosystem. Binance isn't too far away trailing on $US16.67 Billion Total Value Locked with Ethereum still the dominant Decentralised Finance Protocol with an impressive $US153.56 Billion Total Value Locked across all it's decentralised finance protocols.
Anchor Protocol leads Decentralised Finance
Image Source
Anchor continues to be the top Decentralised Finance protocol on the Terra Network offering an impressive 19.46% APY on Terra Networks native stable coin UST. At current Anchor has an impressive $US9.6 Billion dollars Total Value Locked. $US5.4 Billion worth of locked value consists of collateral provided as bLUNA $US4.9 Billion and bETH $US428 Million. With the remaining $US4.1 Billion UST deposited in it's savings vault.
Decentralised Finance Done Differently
Terra Network set out to become the Bank of the Cryptosphere by utilising their algorithmic stable coin that continuously burns Luna to mint UST and vice versa. With the majority of Decentralised Finance on Terra Network requiring bLUNA this drives up the value of the token. You can find out more information about Terra's objectives here
Can Luna Replace Ethereum?
I say this lightly but there is a very real possibility that we could see Terra emerge quite victorious. Perhaps not so much as 2nd spot crypto as a whole yet but it can potentially topple Ethereum in the Decentralised finance world. Terra Network only has around 13 Decentralised Finance protocols where Ethereum has a few hundred.
Terra Network did it's research well prior to launching with one focus in mind, being the leading Decentralised Finance Block Chain and it spent it's days not so much Bridging to other chains but actually being the Bridge and it is growing rapidly.
[source](https://twitter.com/terra_money/status/1471610221822976001?ref_src=twsrc%5Etfw)1/ The first Cosmos-native perpetual LUNA/UST pair is now available for trading on @InjectiveLabs!
ā Terra (UST) š Powered by LUNA š (
Users can also access LUNA/UST + UST/USDT spot pairs, with IBC functionality enabling native Terra - Injective transfers directly integrated with your Station wallet š https://t.co/2FkyGiuZBH_money) December 16, 2021
An exciting point to make is that a TVL of $US150 Billion would set Luna's token price at around the $US412 mark. Now I don't know what the path towards this is as there are a significant amount of large token hodlers from the $1 days.
Image Source
An inspection of the project ALL time chart also shows that there were some significant market dips which indicate that a lot of $1 sellers sold at the $10-$11 mark. Then again at the $29 and $27 followed by $35 and one occurring now at the $84 mark.
So long as Terra continues to grow and it's use cases for bLUNA continue to grow I don't think there will be too much market dips. Especially with the majority of large bags sitting with validators rather than individual investors.
But, it is anyone's guess. What are your thoughts?
Image Sources provided supplemented by CANVA Pro subscription. This is not financial advice and readers are advised to undertake their own research or seek professional financial services