Terra’s native token, LUNA, has flipped Ethereum to become the second-largest blockchain network in terms of staked value.
LUNA captures value for Terra’s stablecoin, UST, which functions as part of a network of decentralised finance protocols.
The coin has increased in value ten-fold over the past year as the popularity of the Terra network continues to grow, holding the position of seventh largest crypto by market cap as of March 7.
With 226,408 stakers accounting for £20 billion of locked up LUNA, the network now only sits behind Solana in terms of total staked value, according to data from Staking Rewards.
In comparison, Ethereum has only 54,768 stakers despite being a far larger network. That being said, only 7.92% of Ethereum’s total supply is staked compared to 40.8% of LUNA being locked away to earn interest.
Looking at estimated annual staking rewards, LUNA yields 6.62% on average while ETH fetches 4.81%. The most rewarding out of the top 10 staked assets is Polkadot (DOT) with 13.92%.
Data from another site, DefiLlama, shows that Ethereum far surpasses its competitors in terms of total value locked (TVL) into its network, with its £85 billion dwarfing LUNA’s £17.7 billion.
Recent interest in LUNA has surged though, with the network’s TVL increasing by 27% in the last week, sitting comfortably above third-placed Binance Smart Chain with £9.1 billion TVL.
LUNA’s recent bullish phase comes off the back of 29 million tokens worth nearly £2 billion being burnt in February. The move was followed by an increase in the supply of UST by 14.5%, or 12.9 million tokens.
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