Why Solana, Polkadot and Luna are all in place this week

What happened

Solana (CRYPTO: SOL), Peas (CRYPTO: POINT), and Moon (CRYPTO: LUNA) climbed 76.24%, 29.08% and 67.36% respectively in the past seven days, as of 10:30 a.m. EDT on Saturday. They now trade at $ 76.66, $ 28.73, and $ 28.62 per token, respectively. The projects on the decentralized finance networks (DeFi) behind these tokens have increased sharply in recent times.

Image source: Getty Images.

So what

First of all, the total value of projects staked on Solana recently exceeded $ 2 billion. It also became the token of choice for cryptocurrency billionaire Sam Bankman-Fried, the founder of FTX, the world’s fifth largest cryptocurrency. As a result, Solana’s gains did not lose momentum even though the network suffered its very first carpet pull. The developers of the Luna Yield crypto-lending platform have shut down their websites and social media pages after allegedly defrauding more than $ 8 million from investors.

Second, Polkadot is evolving into a powerful blockchain internet (IoB) network that enables the transfer of data and assets between multiple chains. Last month, the first decentralized cryptocurrency exchange launched on Polkadot’s Acala DeFi hub with a total value of $ 3.4 million locked down. As the feature grows, this could potentially allow Polkadot to not only compete with the smart contract feature of Ethereum but also that of decentralized crypto-currency exchange protocols such as Uniswap.

Additionally, on August 18, Acala integrated MetaMask, a browser extension and mobile application that allows users to access their Ethereum wallet to interact with decentralized applications on the Ethereum network, to give users equal access. to the Polkadot network. MetaMask has over 7 million downloads on Alphabet‘s Google Chrome and 1 million downloads on Google Play.

Recently, Coinbase Recently launched pro Luna wrapped (CRYPTO: WLUNA) and TerraUSD (CRYPTO: TUSD) on its trading platform. Both tokens, along with Luna, are part of the Terra Network ecosystem. The developers behind the Terra Network had apparently solved a critical problem in the cryptocurrency space – by allowing a cryptocurrency to be simultaneously stable enough to be used as a form of payment, as well as volatile enough for it to be. there is room for capital appreciation.

It does this by linking the value of the Luna tokens to the stable TerraUSD coin, which has a theoretical exchange rate of 1: 1 against the US dollar. Users can buy-exchange their Luna tokens for TerraUSD when the latter is discounted against the US dollar, or sell their TerraUSD tokens for Luna tokens for a premium when the latter is priced above the US dollar. In this way, the users themselves receive rewards for matching the exchange rate with the Luna tokens, while the consumer transactions are settled in the stable TerraUSD. A recent update to the network opened its integration with Ethereum, with $ 2.7 billion in capital already flooded into Terra Anchor’s loan and savings protocol.

Now what

Keep in mind that at some point in history all of today’s major cryptocurrencies like Bitcoin and Ethereum were little-known altcoins that traded at very low prices. Over the past year, DeFi’s total addressable market has grown from around $ 14 billion to over $ 100 billion. So there are a lot of opportunities to get rich in this sector at the moment.

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Suzanne Frey, an executive at Alphabet, is a member of the board of directors of The Motley Fool. Zhiyuan Sun owns shares of Ethereum, Polkadot and Uniswap. The Motley Fool owns shares and recommends Alphabet (A shares), Alphabet (C shares), Bitcoin, and Ethereum. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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