Terra Luna overtakes Ether as second-largest staked crypto

cnbctv18.com:

A strong price surge over the last week has made Luna, Terra network’s native token, the second-largest staked asset in terms of staked value. There is currently $30-billion worth Luna being staked across various platforms, toppling Ether which had a little over $27.5 billion in staked value at the time of writing. This is according to a report by Staking Rewards, a leading data aggregator for cryptocurrency staking.Luna is one of the two tokens of the Terra blockchain.

The network also uses the UST token (Terra USD), a stablecoin pegged to the US dollar, to facilitate global payment systems.Staking is the process of pledging crypto assets to the blockchain in order to become a transaction validator (or node) on the network. As nodes consume computing power to authenticate transactions, the blockchain rewards them in its native token every time a block of transactions is authenticated and added to the chain. Staking is possible only on blockchains that use the Proof-of-Stake (PoS) ‘consensus mechanism.’According to Staking Rewards, 40.58 percent of all eligible Luna tokens are being staked at the moment.

The data also reveals that a major share of Luna tokens is being staked on cross-chain protocol Orion Money, with 42,960 users staking $1.5 billion worth of Luna tokens. Terra offers 7 percent of the staked value as a reward for staking Luna tokens. Solana offers only 5.86 percent, yet it remains at the top of the leader board in terms of staked value.Data pulled from Defi Llama, a leading Total Value Locked (TVL) aggregator in the decentralised finance (DeFi) space, shows that the Terra network has $23.53 billion worth of assets locked in.