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Highlights
- Cryptocurrency Terra has its own set of stablecoins like a Terra US Dollar (UST), Terra Canadian Dollar (CAT) and Euro Dollar (EUT).
- LUNA coin has surged by 4157 per cent since the last twelve months.
Cryptocurrency Terra (LUNA) appears to be getting quite a bit of investor attention. LUNA was trading over 20 per cent higher at US$ 25.49 per token (9:45AM EST) after clocking an all-time high of US$ 26.6 apiece on Tuesday, August 17.
The cryptocurrency industry crossed the US$ 2 trillion-mark in terms of market capitalization on Monday. This was for the first time since May 2021 when almost all crypto assets experienced a notable rally.
What is Terra (LUNA)?
With a unique concept in the cryptocurrency industry, Terra is a blockchain protocol and decentralized financial infrastructure (DeFi) that aims to reduce volatility associated with cryptocurrency.
In other words, Terra is a stablecoin. Stablecoins are cryptocurrencies that are like traditional crypto assets, like Bitcoin and Ether, but appear to come with negligible volatility.
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In the last few months, Bitcoin and some other digital assets have seen a massive drop in prices. As they remain highly volatile, stablecoins like Terra seem to be gaining investor attention due to its characteristic of being less volatility and posting fairly predictable prices.
Terra has its own set of stablecoins, such as Terra US Dollar (UST), Terra Canadian Dollar (CAT) and Euro Dollar (EUT).
Also Read: Fantom surges by 16%. Can FTM crypto hit $1 in 2021?
LUNA’s price movements and prediction
Despite the biggest DeFi hack ever, the surging prices of tokens like LUNA indicate that investors remain confident about the sector. One major reason behind the surge could be the increasing debate over the higher volatility of traditional cryptocurrencies and whether they are here to stay for a long period.
According to data from CoinGecko, LUNA has surged by 4157 per cent in the last one year and 294 per cent in the last one month.
As demand for higher scalability is expected to increase in future, Terra seems to be better positioned in the market. Its prices could soar to US$ 50-mark per token by the end of 2022 and US$ 100 per token by 2025.
Bottomline
Given the crypto crash in May 2021, one major aspect that cannot be ignored is that the cryptocurrency industry is highly unstable, and one must be aware of the uncertainties before making any investments.
