Terra (LUNA) is a blockchain-based stablecoin that features two cryptocurrencies: LUNA and UST. LUNA is a token that is used in parallel to achieve a stable price for the UST coin.
Unlike other stablecoins, on the Terra blockchain you need to burn the equivalent amount of LUNA in dollars (1:1). This is how the stability of the currency is maintained. When LUNA is burned, the US dollar equivalent is obtained in UST.
The price of LUNA has had a growth due to two DeFi protocols that have been launched on the blockchain: Mirror Protocol and Anchor Protocol, launched in 2020 and 2021 respectively.