Before we peruse on how terra luna has become a hot topic in the crypto investment and scaling new highs. Let’s have a short and simple understanding of “Terra”.
Terra is a decentralized blockchain payment network for algorithmic stable coins, or digital currencies that track the value of other assets. On the Terra blockchain, Terra stable coins can be quickly spent, saved, traded, or exchanged. The Terra protocol provides non-volatile stable coins that track the price of any fiat currency (a government-backed currency such as the U.S. dollar or Euro).
Difference between Terra and Luna
Luna is used for governance and mining, whereas Terra stablecoin tracks the price of fiat currencies like the US dollar and euro. The Terra protocol keeps the Terra stable coin’s price stable by ensuring that supply and demand are constantly balanced. This is accomplished by employing Luna as the Terra stablecoin’s variable counterbalance.
Simply said, Luna tokens are Terra’s technique of ensuring that its stable coin prices remain stable. When the stablecoin supply needs to be increased or decreased, it incentivizes trading between Luna and stablecoins.
So what are Stablecoins, and why is it used so often in this blog? Here’s the Answer
Stablecoins are a type of cryptocurrency backed by a reserve asset to maintain price stability. Stablecoins have grown in popularity as they attempt to blend the best of both worlds: cryptocurrencies’ quick payment processing and security or privacy, as well as fiat currencies’ volatility-free, stable pricing.
Given the scale of their $130 billion-plus market share and potential impact on the broader financial system, regulators continue to scrutinize stablecoins. According to the International Organization of Securities Commissions (IOSCO), stablecoins should be regulated as financial market infrastructure alongside payment systems and clearinghouses in October 2021. The proposed laws would target stablecoins deemed systemically significant and capable of disrupting payment and settlement systems by regulators. This can be a net positive for the ecosystem because it validates the importance and usefulness of stablecoins in digital payments and the economy.
What’s the Terra Luna Ecosystem?
Terraform Labs, the firm behind the Terra blockchain formed Luna Foundation Guard (LFG), is a non-profit organization dedicated to supporting the Terra ecosystem and ensuring the stability and adoption of its most popular stable coin, UST. The new non-profit will focus on several important pillars that they regard as critical to the ecosystem’s advancement, and its establishment is one of the reasons why Terra’s LUNA token has been able to avoid losses in the present gloomy crypto market.
Terra has a burgeoning ecosystem in the crypto realm, with more than 70 projects spanning across Defi, Web 3.0, and non-fungible tokens, in its mission to become a top eCommerce stable coin payment and decentralized finance (Defi) service, provider. Terra attempts to address many of the issues that the world’s biggest stable coins are now facing. For starters, the network aims to reduce market monopolization. Unlike the competition, Terra’s system works across several blockchains. The network also attempts to remove technological limits on these assets through its open financial infrastructure.
- Anchor Protocol
- Andromeda Protocol
- Mirror Protocol
- Talis Protocol
- Vega Protocol
Terra launched the Anchor savings and lending protocol on March 17, 2021. Users can deposit stable coins and earn interest on them using this protocol. The yearly interest rate on UST deposits is currently around 20%.
Because UST is a stable coin with a value of $1, earning 20% interest on it is appealing. It’s worth mentioning that the interest rate may vary in the future, and even stable coins aren’t as safe as cash in a bank account. The high-interest rate may aid in the growth of UST’s customer base. If it happens, the price of Terra’s Luna token will most likely rise.
Terra Luna Historic Price & Future Predictions According to Experts
In the midst of the conflict between Ukraine and Russia, all of the leading digital tokens were trading upward. Terra increased by 24% to become the eighth-most valuable token. Terra has more than doubled in the last month, increasing by much to 115 percent. In the last week, the token has increased by around 85 percent. In the last 24 hours, the stock has risen by up to 30%.
Since the beginning of December 2021, LUNA has been the market’s fastest rising alt. This implies that it has attracted a significant number of new investors as they seek to diversify into the strongest altcoin while bitcoin consolidates. BTC has been consolidating at the lows for some time, allowing powerful alts like LUNA to race to the top.
According to the Government Capital crypto analytical source, the value of LUNA may attempt to surpass the $120.25 level in the middle of 2022. The Terra (LUNA) exchange rate could be set at $123.47 by the end of July. By the end of 2022, the coin’s lowest price maybe $142.85, and its highest value might reach $164.57.
Terra is currently trading at $94.08 USD with a 24-hour trading volume of $5,344,822,017 USD. Our LUNA to USD pricing is updated in real-time. Terra has increased by 6.48 percent in the last 24 hours. CoinMarketCap now ranks #7, with a live market cap of $35,247,279,226 USD. It has a circulating circulation of 374,653,316 LUNA coins and a maximum supply of 374,653,316 LUNA coins.
Where Can You Trade Terra Luna?
Not every crypto exchange is the same. Some sites allow you to invest in hundreds of cryptocurrencies, while others only allow you to invest in bitcoin and a few other altcoins. It’s also crucial to think about the security and reputation of the crypto exchange you choose. There are several cryptocurrency exchange platforms where you may trade Terra Luna coins like Carret. . You can earn interest on your crypto holdings up to 17%APY on Carret through the 24Carret product offering.