The DeFi chain, Terra, had a very good run these final two days, with its stablecoin UST flipping BUSD to realize the place of the third largest stablecoin. It additionally achieved the milestone of turning into the primary decentralized stablecoin to succeed in the highest three.
Terra leaves a mark, however…
…as UST adoption grew, its focus within the Wormhole has fully vanished from the meager 3% in January. Uniswap V2, which had the best focus till November, at the moment holds about 11.9% of the UST, whereas one other 4% of the UST is in Curve. The remaining 84% is at the moment in different unspecified locations.
Terra UST distribution | Supply: Dune – AMBCrypto
No matter its location, UST transfers have been rising steadily, with every day transaction volumes ranging between $200 to $400 million UST. At one level in January, quantity spiked to $5.3 billion.
Terra UST transaction volumes | Supply: Dune – AMBCrypto
And over the months, this development helped UST attain the quantity three spot. In doing so, UST additionally flipped the situation of Terra’s native token LUNA from being the worst performer of the week to the perfect performer this week.
Up by 23.52%, LUNA gained again a lot of the 35.43% loss witnessed this month however nonetheless stays 25% away from marking a brand new ATH.
LUNA worth motion | Supply: TradingView – AMBCrypto
Nonetheless, ought to this momentum proceed, it gained’t be too tough since worth indicators are already supporting a bullish narrative at the moment. MACD is exhibiting the probabilities of a bullish crossover within the subsequent 24 hours, and RSI jumped again into the bullish zone inside 48 hours.
However not solely is it doing nicely on the funding entrance, however its efficiency within the DeFi house has additionally been no much less important.
Terra’s TVL jumped $3 billion inside the final two days, out of which $2 billion got here from the second largest dApp on the planet, LIDO, pushing it additional nearer to toppling Curve out of its primary spot.
Lido Finance TVL | Supply: DeFi Llama – AMBCrypto
Though as all the time, spiking costs additionally spike the dangers related to the asset, and that’s the case proper now. LUNA’s risk-adjusted returns are horrible at the moment, and to make issues worse for buyers, its volatility has shot up by 117% over the past seven days, making it susceptible to a worth drop as acute as the worth rise.
Terra Volatility | Supply: LunarCrush
