The Luna token continues to hit record highs and is climbing the digital currency ranks to become the “latest shiny thing in the crypto space.”
With a market cap of about $25 billion, Luna is now the 11th-largest cryptocurrency, according to CoinMarketCap.
The sharp increase is believed to be due in part to a reduction in supply, according to one report.
There’s also a lot of buzz on the Terra ecosystem for decentralized finance (DeFi) and stablecoin products, Antoni Trenchev, co-founder of crypto lender Nexo told Bloomberg.
He called it “the latest shiny thing in the crypto space, following in the footsteps of other blockchains like Solana and Avalanche, all [of] which have witnessed explosive gains in the past year.”
The Terra protocol uses stablecoins (cryptocurrencies that attempt to peg their market value to an asset like the U.S. dollar) to underpin a DeFi ecosystem including apps like Anchor, Pylon and Mirror Protocol.
Singapore-based Terraform Labs, the company behind the design of the Terra blockchain, is in a dispute with the U.S. Securities and Exchange Commission over whether the platform is selling unregistered securities.
The SEC recently announced that it has filed an action against Terraform Labs and co-founder and CEO Do Kwon seeking an order directing them to comply with investigative subpoenas for documents and testimony.
Many regulators worldwide are looking at boosting the regulatory framework around stablecoins, including the U.S.