Terra Is Attracting Large Share Of DeFi Market

LUNA’s 50% increase in the last week has made it one of crypto’s most popular coins. With $34 billion worth, Terra (LUNA) currently occupies a seventh place on Coinmarketcap, and even more, headlines are making themselves known with this rise to fame. Not only did the token shoot up past Solana ($32B), but also Cardano ($31B), who sit eighth & ninth respectively now that their rankings have changed due to LUNA’s hipe. LUNA is the token that fuels the DeFi ecosystem. However, the real product is stablecoins, like UST, which pegs its value to dollars. Also protects against volatility in cryptocurrency prices by keeping your wealth protected from fluctuations. Related Reading | Terra (LUNA) Outperforms Popular Cryptos Ether, Dogecoin In The Past 24 Hours The UST and LUNA markets are in a tug of war. The two stablecoins compete with one another for investors’ attention, but they also affect each other’s prices as well. When the USD-based Terra gains more traction than its crypto counterpart, there will likely be an increase on both sides due to their unique algorithmic mechanisms, which motivate market agents (arbitrage opportunities) There are many stablecoins, but UST is the only one with decentralization. The market cap of $13 billion makes it the fourth-largest stablecoin. All other top hitters are centralized. Tether with a $79 billion market cap, followed by Circles’ USDC$53 billion and BUSD ($18 b...