Hey everyone this is KashRon here from the Kash DeFi team, in exclusive partnership with CryptoDaily™.
On this week’s episode of Terra Weekly. First, let’s look at the price of Luna, which is up almost 40% this week to around the $86 mark today. This is pretty remarkable considering Bitcoin has been in a malaise so far this past month, being down 1% for the week, and Ethereum being down around 2% this week. This is significant as it shows a de-coupling of Luna from the broader crypto markets, a great sign of health. And a big part of this is because the price of Luna is largely influenced by the circulation of UST, which should consistently be going up in the future as it’s established more within the crypto world. Keep in mind that UST is already the largest decentralized stablecoin.
I’ve also heard from multiple sources that Terra is raising large funding round, so perhaps people are front-running that news which is why we’re seeing an all time high price. We’ll see, but I trust my sources on this one.
I actually want to call something special out over here: Terra has officially become the second-biggest smart contract platform by total value locked, according to data provided by Defi Llama. This means that Terra just surpassed Binance Smart Chain, which is incredible.
Here’s a notable tweet from Do Kwon about all the positivity happening in the Terra ecosystem right now. He says “10 Billion TVL for @anchor_protocol. It is quickly becoming the baseline yield for all of crypto.” Shout out to Matt Cantieri who is General Manager of Anchor Protocol, and the whole team there.
Next, you’ll see Anchor’s deposit and borrow ratio here. While Terra’s price hit an all time high this week, it is exhibiting a major divergence between deposit and borrow activity. This is largely due to the Astroport launch and a lot of capital moving into their system. However, this is a very critical method, and money is being pulled from the yield reserves right now. Keep an eye on the deposit/borrow ratio, as that determines the overall health of the Terra ecosystem.
First news of the day, Astroport successfully completed phase 1 of its launch. Astroport is a decentralized exchange created by a team funded by Delphi Digital, one of the largest and most well respected crypto investors in the space, and one of the earliest investors in Axie Infinity. Up until now, most people have been using Terra Swap on the Terra ecosystem as their dex, but it’s relatively simple in functionality. Astroport gives a much more robust range of possibilities and has its own token.
Next up, Nexo has listed Luna on its platform. This is huge as Nexo is one of the largest lending protocols in the world, along with Celsius and BlockFi. Listing Luna gives exposure to the asset and yield generating possibilities to a wide userbase.
Next up, you’ll see further signs of adoption here, as NEAR protocol announced that it is integrating UST across its ecosystems. Near is a layer 1 blockchain in a super normie friendly way, like using decentralized applications without connecting your wallet. It’s also sharded and proof of stake, one of the rare blockchains to hold that status along with Harmony One. By them adopting UST, this is just another great example of UST adoption every single week. Additionally, OkCoin, a major global crypto exchange, added Terra as well. The key is to see whether UST can become the prominent stablecoin of the future and a trading pair against other cryptocurrencies the way tether is associated with today.
And now, I just wanted to include some noteworthy news outlets covering Terra this week in CNBC and Investing.com. Always great to see non-crypto media outlets covering Terra, and I’ll try to find these every week whenever possible to show you.
That’s it for me today everyone. Merry Christmas and Happy New Year, and stay tuned for the next episode of Terra Weekly.
Disclaimer: This video is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.