The popularity of Terra has continued to grow as it climbs up the ranks of the top ten cryptocurrencies, surpassing even Ethereum 2.0 in terms of market value.
To clarify, this is not the “total value locked” in the various DeFi protocols. Ethereum continues to dominate in this category. In Vitalik Buterin’s blockchain, an estimated $110 billion on a total of $200 billion is locked. Terra’s TVL is ranked second with $23.7 billion, breaking an all-time high.
As of now, LUNA tokens worth USD 28 billion are allocated to maintain the blockchain functionality. Consequently, it is the second-most profitable chain, after Solana, on which SOL worth $ 35 billion is slashed.
The Proof of Stake consensus mechanism is used to prevent invalid transactions/blocks from flooding the blockchain network. It requires users to lock a portion of their cryptocurrency to get approved for inclusion in a block.
As a result, if the approver proposes an invalid block, he loses some of his staked coins. If he presents a block that is compliant with the consensus rules, he is rewarded with all transaction fees of that block. This creates an opportunity for cryptocurrency holders to generate passive income.
Terra Rewards
At the moment, Terra is offering 6.62% of the annual profit from staked coins. This is more than in the case of Solana and Ethereum 2.0, which offer 5.93% and 4.81%, respectively. The amount of this interest may change with the increase and decrease of network activity, as well as the increase and decrease in the value of staked coins.
The number of LUNA tokens that are staked at the moment is 40.65%, while the number of SOL tokens that have been blocked is almost three quarters.
The Ethereum network has not yet been updated to Ethereum 2.0, but the escrow contract has already accumulated more than $25 billion in ether. After the update, which is expected to take place in July, this value will likely increase significantly.
Terra’s current exchange rate stands at $90.57 and the market capitalization exceeds $33 billion.
Read Also: Swiss officials plan to freeze Russian cryptocurrencies
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
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