New Delhi: Amid the volatility in the crypto market, Terra (LUNA) has emerged as a front runner in terms of performance, delivering solid returns to the investors.
The digital token has outperformed the crypto markets and other major peers in the last various parameters including one month, one week and 24-hour timeline.
Terra has more than doubled in the last one month, rallying as much as 115 per cent. The token has surged about 85 per cent in the last one week. The scrip has surged as much as 30 per cent in the 24-hour timeframe.
With a sharp rise in valuations, the total marketcap of Terra zoomed to $33.6 billion, making it the seventh largest crypto token, surpassing Solana and Cardano.
Jay Hao, CEO, OKX said that the crypto market is witnessing a sudden surge in the demand for stablecoins which is driving the upward trend in Terra prices.
“Terra ecosystem has gained a lot of investor attention after the recent launch of Terra based ETFs,” he added. “It is expected to continue to be an important part of the global payment system due to its fiat-backed protocol.”
There are multiple factors that can be well attributed to the rise as Terra is considered to be a serious competition for Ethereum. However, a number of tokens have attempted to become ‘Etheruem Killers’.
Crypto adoption is surging globally which is also driving the deployment of Terra blockchain in various projects across Defi, NFT and Web3, said Shivam Thakral, CEO of BuyUcoin.
“Luna Foundation Guard has raised $1 billion recently to create a Bitcoin-led reserve for UST stable coin which may have sparked the investor’s interest in the Terra ecosystem,” he adds.
Also, it has offered incentives to attract investors to its DeFi ecosystem and increased demand for stablecoins. ETH might have the largest DeFi protocol, but the Terra ecosystem already has 13 DeFi protocols built on it, in a short time period.
Terra’s burn mechanism is another factor which is adding to the rally. The point of burning LUNA tokens from the community pool was to create scarcity of the asset and boost its price.
Pratik Gauri, CEO and Founder 5 ire said that it seems that investors also became more hopeful due to the decentralized and algorithmic nature of the stabilisation mechanism.
Innovation is the key that has created the entire DeFi juggernaut, and have kept liquid staking afloat even during a down market, Gauri said.
Terra is known to be one of the fastest-growing cryptos in the market. Terra aims to combine the price stability and wide adoption of fiat currencies with the censorship-resistance of Bitcoin and offers fast and affordable settlements.
This rise is a proof of how sustainable Blockchain projects do not depend on global conditions, said Harman Puri, Chief Metaverse officer, Asgard Dao.
“The use of Terra in the fintech space and its strong infrastructure providing an algorithmic stable coin with the utmost security is playing a key role in the decentralized financial world,” he added.
Despite the latest strides in the crypto market, Terra still has potential to outperform the major crypto assets. With the growing popularity of the metaverse, currently, Terra has a huge scope to grow further.
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