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LUNA overtakes ETH as the 2nd largest asset

Terra’s native cryptocurrency LUNA has witnessed a strong rally despite the market volatility in recent times. The LUNA crypto is aiming a move to its new all-time high and is currently trading 7.5% up at a price of $95.36 with a market cap of $35.7 billion.

LUNA overtakes ETH as the 2nd largest asset

With the recent move, Terra’s LUNA becomes the second-largest Proof-of-Stake (PoS) network by staking rewards toppling giants like Ethereum 2.0, as per the latest data from staking rewards.

Terra’s LUNA has emerged as a strong competitor to Ethereum with growing demand among DeFi protocols. However, Terra LUNA remains second after Ethereum in terms of the total value locked (TVL) which currently stands at $23.7 billion.

Over the last week, LUNA has registered the highest gains at 77% among all the top ten cryptocurrencies. It is now the seventh-largest cryptocurrency by market cap toppling giants like Solana (SOL), Cardano (ADA), and Avalanche (AVAX).

So, why is the LUNA price so high?

Last week, the Luna Foundation Guard (LFG) announced a LUNA cryptocurrency over-the-counter sale. This investment, according to the Luna Foundation, will be used to “create a Bitcoin-denominated Forex Reserve for UST.

“Although the widespread adoption of UST as a consistently stable asset through market volatility should already refute this,” LFG explained, “a decentralized Reserve can provide an additional avenue to maintain the peg in contractionary cycles, reducing the system’s reflexivity.”

As a matter of fact, Terra is now the seventh top cryptocurrency in the market. It has surpassed the strong potential coins such as Solana (SOL), Cardano (ADA), and Avalanche (AVAX). As per the trading charts for the past week, LUNA is the token that records high gains among all the top ten cryptocurrencies.

The story behind this bullish rally might be the announcement of the over-the-counter sale of LUNA cryptocurrency from the Terra Foundation. However, Terra hosts 13 DeFi protocols, which seems to beat Ethereum’s DeFi market cap. Significantly, LUNA’s price has also risen due to the burning mechanism of Terra’s native stablecoin, UST. Furthermore, these updates and implementations have supported in all ways for LUNA to surge in price value.

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