With the dramatic rise, the total market cap of Terra has zoomed to $34 billion, making it the seventh-largest token.
A relatively little known token called Terra (Luna) has emerged as the top bet in performance and delivering returns during the past month when the cryptocurrency market has been experiencing extreme volatility.
Over the past month, the token’s value has almost doubled — from a low of $47 to $91 now. It has risen dramatically in the past seven days, just around the time the war in Ukraine began.
On February 24, the price of Terra was hovering around $52. But it has risen since. With the dramatic rise, the total market cap of Terra has zoomed to $34 billion, making it the seventh-largest token, according to CoinMarketCap, a market research agency.
Terra Luna’s strong performance possibly comes from the uncertainty that has besieged the global markets since the Russian forces entered Ukraine to launch a war.
Experts said that this increased crypto investors’ interest in stablecoins; Luna happened to be the beneficiary.
Also, the Singapore-based non-profit organisation Luna Foundation Guard (LFG) has decided to create a Bitcoin-denominated reserve as an additional layer of security for UST – Terra’s decentralised stablecoin, whose value is pegged 1:1 to the US dollar.
Terra is a blockchain protocol that uses fiat-pegged stablecoins to power price-stable global payments systems.
It was founded in January 2018 by Daniel Shin and Do Kwon, who conceived the project to drive rapid blockchain technology adoption by focussing on price stability.
Terra has established several partnerships with payments platforms, particularly in Asia-Pacific. Also, it is supported by businesses and platforms advocating for its adoption.
In February 2019, the company announced that e-commerce platforms from 10 different countries were members of the alliance. This holds great promise for the token in the coming time.
Source : Ndtv.com