Terra (LUNA) opened the day at $80.5 and went on to hit a local peak of $99.55
The rise in value is attributed to the staking of LUNA that has surpassed that of Ethereum and Solana
Terra is now the second-largest DeFi ecosystem after Ethereum in terms of total value locked
Terra (LUNA) could go on to equal or exceed its December 2021 all-time high of $103.33
The digital asset of Terra (LUNA) has had an eventful last 24 hours having gained roughly 23.5% in the same time period.
According to Coinmarketcap, Terra (LUNA) opened the day at $80.6 and went on to hit a local peak of $99.55 a few moments ago. Terra (LUNA) is currently trading at $97.82 which is a 21.14% increment from its value at the beginning of the day.
LUNA Becomes the Most Staked Digital Asset
The rise of Terra (LUNA) in the markets is attributed to crypto users preferring to stake the digital asset due to its high rewards when compared to the popular digital assets of Solana, Ethereum, and Cardano.
At the time of writing, LUNA has the highest staking rewards of up to 6.13%. Solana provides the second-highest staking rewards at 5.85%. Ethereum comes in third with staking rewards worth 4.81%.
TVL Locked on Terra (LUNA) Hits $25.93B, Second to Ethereum
A second reason for the impressive price increment of LUNA is the rise of DeFi on the Terra blockchain.
According to DeFiLlama.com, the total value locked (TVL) on Terra (LUNA) currently stands at $25.93 Billion and is second to Ethereum’s $114.52 Billion. The TVL on Terra represents 12.71% of the total value of the DeFi market.
The TVL on Terra has also exceeded that on the Binance Smart Chain which currently stands at $12.02 Billion.
LUNA Could Retest its All-time High of $103.33
With respect to future price movements, a quick glance at the daily LUNA/USDT chart reveals that the digital asset could be on a path towards equalling or exceeding its December 2021 all-time high value of $103.33.
However, LUNA is trading very much above the 50-day, 100-day and 200-day moving averages thus pointing towards the possibility of a pullback in the scenario that Bitcoin falls below its current range of $40k to $42k.
Additionally, the daily MFI, RSI and MACD are hinting at an overbought scenario for LUNA/USDT, hinting towards a potential double top around its recent all-time high value.