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Terra TVL Hits New All-Time High as LUNA Soars 75% Over the Past 7 Days
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Terra's LUNA token wrapped up February with a massive 13% green candle on the last day of the month.
The token topped the monthly gains chart among the ten cryptocurrencies by market capital ahead of Solana and equally well-performing assets. This is despite the general crypto market facing a series of bearish waves, most recently the geopolitical conflicts in Ukraine.
For context, LUNA traded at $50.80 on 1st February before rising against the bearish market sentiment over the course of the month to peak at $84.50 on the last day – a whopping 66.33% upswing.
In the last 24 hours, LUNA has seen approximately 8% in price gains and is one of the two tokens that have registered a 24-hr ascent of more than 7% alongside Avalanche (AVAX). The Monday rally pushed the token to a 30-day high of $95.36 early today, and though it has since retreated on account of mild profit-taking, it is still trading in the range of $90.
LUNA/USD trading chart. Source: CoinMarketCap
While many other top altcoins struggle to close the gap between their current price and record high, LUNA is now within range of its December summit of $103.33. Bulls are targeting a break above $100 as this will ultimately place them in a position to take a swing at the all-time high price.
Terra token sale sparked the rally, crypto adoption in Russia and Ukraine fueled it
Last Tuesday, the algorithmic stable coin network announced it had wrapped up a private token sale netting $1 billion for a Bitcoin-denominated reserve. The sale led by Three Arrows Capital and Jump Crypto struck as profoundly bullish news for investors, with the token posting significant gains not long after.
Meanwhile, in Europe, the Russian-Ukraine conflict has resulted in increased adoption and spending of cryptocurrency. Both sets of citizens have taken a liking for the asset, with many resorting to it as a haven.
The growing crypto donations to the Ukrainian government have helped paint a good perception of this asset class, with many now showing a willingness to adopt it. This has been reflected in the market by the surging prices.
On the other side of the border, the shrinking value of the Ruble as a result of heavy sanctions on the country has pushed Russian residents to explore other options, with crypto being the reasonable standout choice. Russians' rising interest in these digital assets has also played a huge role in the ongoing rally.
LUNA has seemingly decoupled from the rest of the market
The price swings of Bitcoin – and Ethereum to some extent – have historically swayed the rest of the market. This phenomenon is apparent when crypto-assets move in a similar direction as Bitcoin. In recent days, however, LUNA has established a contrasting pattern by diverging away from the general market direction.
This was even more conspicuous last week when LUNA/USD posted an uptrend amid a bearish market. The defying movement explains the discrepancy between gains registered by LUNA and other top coins, including Ether and Bitcoin. While LUNA has gained over 76% since last Tuesday, Bitcoin and Ethereum have only managed 18% and 15%, respectively.
Data from Blockchain Center.Net shows that LUNA has the lowest 90-day correlation coefficient compared to other assets like Solana, Polkadot and Avalanche.
LUNA/BTC 90-day correlation coefficient
A recent report by CoinTelegraph also confirms the same. The report details that LUNA's correlation on the daily chart has dipped from 0.81 last Monday (21st February) to 0.91 today.
LUNA USD correlation coefficient on the daily chart. Sourced from CoinTelegraph
Terra TVL hits new all-time high
The Terra ecosystem has maintained a strong performance in the decentralized finance space. DeFi Llama data shows that Terra's total value locked has risen by almost 75% in the last month. No chain has seen a bigger increase during this period. The total value locked in protocols under Terra hit an all-time high of $23.39 billion today on the back of a 19.22% positive 24-hr change.
Terra DeFi TVL
The leading protocol, Anchor, which has a dominance of almost 50%, has recorded a 4.86% change during this period. Liquid staking protocol Stader has seen a nearly four-fold change (relative to Anchor) in the same period with 18.40%. LIDO, another liquid staking protocol, has posted an 8.28% change, while the next-generation AMM Astroport has recorded a 4.69% change in the same period.
In line with this TVL growth, Terra's market share has consistently grown since mid-February from 6.98% on 13th February to 10% yesterday. This figure has continued rising into the new month and stands at 11.16% as of writing – the highest it has even been.
To learn more about Terra visit our Investing in Terra guide.
