Flipside Crypto - 🔥 Hot in Crypto: Terra (LUNA) 

Why the LUNA Token Is Poised to Grow

 

Today, we launched the Terra Community Console, a new interactive platform for users to dive deeper into Terra’s blockchain data. With DeFi and cryptocurrency markets moving so rapidly, we found it important for users to be able to examine what is happening on-chain, in real time. Anyone can access it for free at terra.flipsidecrypto.com
 

terra.flipsidecrypto.com

 

What Is Terra? 


Terra is a blockchain platform with a suite of stablecoins that are each pegged to different fiat currencies. The current stablecoins in the Community Console are the UST (US Dollar), KRT (Korean Won), and SDT (IMF SDR-pegged). The LUNA token is the staking token that serves as collateral for these stablecoins. As such, it powers the Terra blockchain’s delegated proof of stake system, ensuring stability and security of the network. 

Looking at Terra’s on-chain data, 5 key metrics stand out as clear indicators of LUNA’s strong potential for growth. 

1. Transaction Count: LUNA transactions quadrupled in the past 90 days. 

 

The transaction count for LUNA tokens is increasing rapidly in correlation with the increasing number of stablecoin transactions taking place on the Terra blockchain.

This is because every Terra stablecoin transaction charges a small transaction fee, which is paid to LUNA stakers. From an economic standpoint, increasing LUNA transactions and LUNA rewards signals broader adoption of Terra stablecoins.  

LUNA is the reserve currency of the Terra stablecoin ecosystem. It has two core functions:

 

1) To provide incentives for the platform’s validators. 

2) To ensure the price stability of Terra stablecoins. When high demand causes stablecoin prices to shift above their peg, Terra will sell that specific stablecoin in exchange for LUNA. Vice versa, if low demand is putting downward pressure on the currency - Terra will buy stablecoins from the market using LUNA.  In this way, LUNA stakers absorb the short-term volatility of the network.



2. Number of Accounts: 2K New Accounts Are Created Daily

With over 2.2 million accounts and on average 2,000 new accounts added daily, the Terra stablecoins are rapidly gaining traction. On-chain data reveals an average of 63,000 active accounts per day, a key metric that is also growing considerably.

In particular, the launch of Mirror, a synthetic asset protocol built on Terra expands the adoption of UST by requiring UST to mint and swap mAssets on the Terra side, and to swap mAssets listed on Uniswap for its bridge to Ethereum. So far, Mirror has accumulated more than $90 million worth of UST collateralizing assets.  

3. Cash flows: $26K are Collected Daily from Transaction Fees 

 

Average daily reward cash flows stand at $26K at the time of writing - most of which come from KRT transactions. 

The breakdown of fees collected per asset shows that KRT transactions are accumulating 26 MM KRT (1KRT = 0.0008 USD) on average daily since December 12th, 2020. Behind it is UST, which brought in 1,000 UST (equivalent to USD 1,000) daily. 

These fees are paid back to LUNA stakers who, on average, are making 9.57% APY (view next metric). The LUNA token should  keep gaining value due to the increasing demand and usage of Terra stablecoins. Additionally, LUNA has no inflation, so when the adoption of Terra’s stablecoins increases, transaction volumes move upwards, and increasing LUNA rewards. Consequently, LUNA becomes scarcer as more Terra stablecoins are printed to meet demand since minting on Terra requires burning a stablecoin or a unit of LUNA.

Read More 

Are you a blockchain project looking for similar insights about your own on-chain activity?

Contact us for a demo of our business intelligence dashboards! 

Did a friend forward you this newsletter? You can sign up here

What did you like? What do you want to read more of? Let me know at rochelle@flipsidecrypto.com. 

View all our other pieces of content here

Connect with us on Twitter or LinkedIn

Unsubscribe
207 South Street, 5th Floor, Boston, MA 02111

Older messages

Flipside Friday Fact: Tether (USDT) 

Friday, January 15, 2021

📈 Fact: Only 64 addresses, including exchanges and liquidity pools, own 95% of the Tether supply on the TRON platform. 🔭 Perspective: There are $14B USDT on Ethereum, and $9B USDT on TRON. 🤿. Diving

Blockchain Projects: Are you tracking these KPIs ?

Friday, January 15, 2021

Your blockchain startup is a business like any other -- if you're looking to create value, you'll need metrics that generate actionable insights, guide your decisions, and ultimately drive

How Stable are Algorithmic Stablecoins?

Tuesday, January 12, 2021

Comparing peg variance, daily transfers and daily transfers from new addresses for the top five stablecoins in terms of market capitalization, namely USDT, USDC, DAI, ESD and AMPL. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Flipside Friday Fact: How decentralized is Bitcoin?

Friday, January 8, 2021

Share this Stat Unsubscribe 207 South Street, 5th Floor, Boston, MA 02111

With Apologies

Wednesday, January 6, 2021

We'd like to retract the title “Which tokens should you buy if you can't afford Bitcoin?” to the FCAS 25 list that went out yesterday, January 5th, in the Flipside Newsletter. The title was

You Might Also Like

Ethereum's Layer 2 – Post Dencun | Layer 2 Review

Thursday, March 28, 2024

Quick Reads and Hot Links Covering the People and Projects Who Are Scaling Ethereum ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏

Former FTX CEO Sam Bankman-Fried sentenced to 25 years in landmark fraud case

Thursday, March 28, 2024

SBF had requested leniency of around 5 years jail time, while the prosection requested 10 times that. ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏

NFT & Blockchain Gaming Weekly - 📉Broad NFT Market Downtrend Over The Past Week

Thursday, March 28, 2024

Broad NFT market downtrend over the past 7 days. Azuki launches 'AnimeChain' on Arbitrum. Munchables, another game on Blast, is exploited. ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏

Reminder: Ethereum Foundation In Hot Water As Government Authorities Initiate Investigation

Wednesday, March 27, 2024

We bring you the top stories in crypto every week! Stories like... Monday March 25, 2024 Sign Up Your Weekly Update On All Things Crypto TL;DR Ethereum Foundation In Hot Water As Government Authorities

Coinbase shares dip as court sides with SEC in ongoing legal battle

Wednesday, March 27, 2024

Coinbase said it is prepared for the SEC lawsuit after court allowed the case to move forward. ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏

DeFi & L1L2 Weekly – 📈 Cronos Titan Upgrade Is Live; DEX Volume Surges

Wednesday, March 27, 2024

Transactions spike as fees drop in Ethereum L2s post Dencun. Fidelity adds staking to Ether ETF application. Arbitrum rolls out Atlas upgrade, with additional fee reductions and more. ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏

DeFi & L1L2 Weekly – 📈 Cronos Titan Upgrade Is Live; DEX Volume Surges

Wednesday, March 27, 2024

Cronos Titan Upgrade is now live. DEX volume on all chains surges, with Solana and Avalanche emerging as top performers. BlackRock launches BUIDL tokenised asset fund on Ethereum. ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏

KuCoin assures users funds are safe after US levies criminal charges

Tuesday, March 26, 2024

The indictment accuses KuCoin and its founders of bypassing the Bank Secrecy Act and operating an unlicensed money-transmitting business. ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏

State of the Network’s Q1 2024 Mining Data Special

Tuesday, March 26, 2024

Our quarterly update on Bitcoin mining, zeroing in on recovering revenues, public miner strategies, and increased energy usage ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏

OneKey: Web3 Dark Forest - How to Effectively Protect Your Physical Devices

Tuesday, March 26, 2024

Author: OneKey Editor: WuBlockchain Original link: https://twitter.com/OneKeyCN/status/1769925695604461753 Evil Maid Attack: Every Second Away from Your Device is a Crisis Imagine you've achieved