Terra (LUNA) protocol surges to record high

September 12, 2021

In the past day, Terra (LUNA) has rallied to reach a new all-time high despite a volatile week for the rest of the cryptocurrency market. In 7 days, LUNA shot up from a trading low price of $23.07 to its new record high of $44.34.

Source: CoinMarketCap

The rally also increased the total value locked (TVL) on the project’s protocol to another record high, taking it to $7.83 billion. This spike in TVL makes Terra the fourth blockchain in terms of ranking according to Defi Llama, a dashboard that lists and ranks decentralized protocols according to certain metrics including TVL and market dominance.

What is Terra?

Terra is an Ethereum-based protocol that takes stablecoins around the world, pegged to different fiat currencies, to create a global payments system. The coin (LUNA) helps to balance and maintain the price of each stablecoin.

The project combines the price stability of the leading fiat currencies with the borderless infrastructure made possible by blockchain. The main aim of the project is to replace complicated and user-unfriendly systems for cross-border payments such as credit cards and payment gateways. With a focus on transparency, Terra is hoping to create a neutral payment ecosystem to provide people with lower fees and fiat stability.

Why LUNA’s price went sky-high

The recent surge of the altcoin project is followed by the announcement of ‘Project Dawn’, a funding initiative for the platforms’ ecosystem. The new initiative is designed to help the ecosystem and iron out issues that the infrastructure is facing. According to the plans, this should help accelerate the growth of the ecosystem and traject the protocol to new heights.

In a Twitter thread, co-founder Do Kwon continued to explain where the funds will be allocated with the intention of building a scalable solution: