LUNA, the native token of the Terra blockchain, which is also needed in the issuance of their native stablecoin, UST, has been gaining traction with great speed. It has become particularly popular amongst the more well-heeled investors who have increased the use of the UST stablecoin by ten-fold this year, from around $182 million at the beginning of this year to over $2.3 billion as of current.
Looking at the TVL of $7.7 billion on the Terra ecosystem, LUNA seems really undervalued at its current market cap of only $14 billion. This could easily be worth $20 billion, believes PrimeXBT analyst Kim Chua.
LUNA has grown over 2,000% since the start of this year and part of this is because of the boom in DeFi. Terra operates like a fully digital, decentralized financial institution. It has its own kind of central reserve. Its customers can earn interest on their assets, spend them through its payment system, and even invest in synthetic stocks. And the token,