Terra’s LUNA Passes Ether to Become Second-Largest Staked Asset
Some $30 billion worth of the tokens are staked by users to earn yields of just under 7%.
A price surge in Terra’s LUNA token over the past week has made it the second-largest staked asset among all major cryptocurrencies in terms of total value staked, according to a data source. LUNA surpassed ether, which has just over $28 billion in staked value at the time of writing.
- Data from Staking Rewards shows over $30 billion worth of LUNA is now staked directly on various platforms, representing a majority of the token’s $34 billion market capitalization.
- Participants are earning over 6.98% in annual yields. Some 41% of all eligible tokens are staked, the data shows.
- Cross-chain protocol Orion.money holds over $2 billion in staked LUNA, the largest among all staking applications that support LUNA. Its 43,000 stakers generate nearly 7% in yields.
- Prices of LUNA rose nearly 70% in the past week amid strong fundamentals and positive sentiment among the community for Terra.
- LUNA is one of the two tokens issued by Terra, a blockchain protocol that uses dollar-pegged stablecoin UST to build a global payments system. LUNA was among the best performing cryptocurrencies in the past two years with a nearly 76,130% rise since lows of $0.12 on Mar 18, 2020.
- Staking in crypto refers to a process where token holders deposit – or lock away – a number of tokens to become active participants in running the network in return for rewards. The rewards are referred to as “yields” and are usually higher than those offered by traditional institutions on deposits.
- Solana’s SOL tokens remain the most staked asset with over $40 billion worth of SOL staked on various platforms. Stakers earn some 5.86% in yields annually.
- However, ether retains its crown in terms of total value locked on applications built on its blockchain. Over $118 billion is locked on Ethereum-based apps, compared with $23 billion on Terra-based apps and $7 billion on Solana-based apps, data from DeFiLlama shows.
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