Hey everyone this is KashRon here from the Intellabridge team, in exclusive partnership with CryptoDaily™. 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.
On this week’s episode of Terra Weekly. First, let’s look at the price of Luna, which is up almost 30% this week to around the $67 mark today. This is pretty remarkable considering the broader crypto market is down a lot. In comparison, Bitcoin is down 11% and Ethereum is down 2%. This is significant as it shows a de-coupling of Luna from the broader crypto markets, a great sign of health.
I’ve also heard from multiple sources that Terra is raising a 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.
Now let’s look at some of the underlining system health metrics of Luna. Over here, you’ll see there has been around $106,000 in tax rewards collected this week, which is up from the last time I reported this number. This makes sense as there was high volume of activity as Terra reached an all-time high. Whether it’s with buying or selling activity, those transaction fees feeding into Luna. Monitoring weekly transactions is important as when transactions occur on the Terra network, there are transaction fees that flow into the Luna token, giving it steady cash flow and intrinsic value. You’ll also see the staking ratio at 37.78%, which is higher than we’ve seen in the past. Perhaps this means that even in all-time highs, Luna holders are becoming HODLers as it takes 21 days to take out staked Luna. With over 160 new terra projects that are coming online next year and all the corresponding airdrops to stakers, it’s understandable why so many are choosing to stake.
Next you’ll see Anchor’s deposit and borrow ratio here. While Terra’s price hit an all time high this week, it did significantly drop from that over the past day, which is showing up here with the significant decrease in borrowing activity by 6%. Keep an eye on the deposit/borrow ratio, as that determines the overall health of the Terra ecosystem. Also, you’ll see that the interest rate is negative 1% almost. You’re actually getting paid to take a loan right now on ANchor. This is notable as the net interest rate is a reflection on how healthy the system is. The more stress on borrowing behavior, the more the Anchor protocol needs to give rewards to incentivize borrowing behavior. So while this might be fun to think about, longterm we do want to see these numbers flip.
Next up, you’ll see Terra making mainstream news on several major outlets. This is great to see as Terra becomes more mainstream. It recently hit top 10 this past week, briefly overtaking polkadot. That’s pretty amazing once you think about it for a moment. It Will be interesting to keep this up.
Now, here’s something interesting to note: over this past week with all the volatility in the crypto market, UST being an algorithmic stablecoin has been remarkably stable. SHout out to /r/rsafety on reddit for pointing this insight out. The longer UST survives through various market conditions, the more confidence it brings to users in the crypto ecosystem that it will survive the test of time. Only through time can UST build that credibility, and it built another block today.
Next up, you’ll see further signs of adoption here, as UST has been listed on HitBTC, Pyth network, and Port finance. Just another great example of UST adoption every single week. 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.
Finally for today, Terra had a strong presence at Dcentral Miami! There was an entire panel of terra project leaders including Apollo, Orion, and Kash DeFi. Yes, that’s me on stage talking, shameless plug. Once I get a video recording of this talk I’ll post it online for anyone here interested in hearing it. We talked about how we see Terra adoption growing across all our respective platforms, and there’s some pretty exciting insights given from all the panelists that day.
That’s it for me today everyone. Thanks for watching, and stay tuned for the next episode of Terra Weekly.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.