Terra becomes second-biggest staked asset

A price surge in Terra’s token (LUNA/USD) over the past week has made it the second-largest staked asset among all major cryptocurrencies in terms of total value staked, CoinDesk reported. LUNA surpassed Ethereum (ETH/USD), the staked value of which is just over $28 billion.

More than $30B staked

LUNA worth more than $30 billion is currently being staked directly on various protocols, representing a large portion of the token’s market capitalization. Just over 40% of all eligible tokens are staked and users are earning over 7% in annual yields.

The staking app with the biggest stake in LUNA is cross-chain protocol Orion.money with more than $2 billion. Its 43,000 stakers generate nearly 7% in yields.

Staking explained

Staking in crypto is where holders deposit a number of tokens in exchange for the right to take part in network operation. They get rewards in return, known as “yields”. Typically, these are higher than returns traditional institutions offer on deposits.

LUNA gained 65% over the past week

LUNA added around 65% to its value over the past week amid positive community sentiment and strong fundamentals.

Terra also issues the stablecoin UST to build a global payments system. LUNA has been among the best performing cryptos with almost 76% growth since it traded for $0.12 two years ago.

Second only to Solana

Solana’s token (SOL/USD) remains the most staked asset. More than $40 billion worth of SOL has been staked on various protocols. Yield is just under 6% a year.

Ether is still king in TVL

Ether still has the highest total value locked on apps running on its blockchain. Ethereum apps lock over $118 billion compared to $23 billion on Terra apps and $7 billion on Solana apps, data from DeFiLlama shows.

What is Terra (LUNA)?

Terra is a blockchain protocol that uses fiat-pegged stablecoins to power price-stable global payments systems. It combines the price stability and wide adoption of fiat currencies with the censorship resistance of Bitcoin (BTC/USD) and offers fast and affordable settlements.

It keeps its one-to-one peg (stablecoin to fiat) through an algorithm that automatically adjusts stablecoin supply based on its demand.

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