Before 2021, Terra was operating at a price level of less than a dollar. However, as the bullish momentum for the cryptocurrency market gained, the token saw phenomenal growth. And while the peak of the bull run in May/June and November was it for most tokens, LUNA is an outlier that has been on a consistent uptrend since August except for a few minor pullbacks. At the time of writing, the cryptocurrency has reached a new all-time high and stands at a price level of $96 with the new ATH lying at $97. During the day, Terra increased by 15% and the bullish momentum has not yet ended for the token. It is currently the ninth-largest cryptocurrency in the market.
What is Terra?
Terra has proposed a new architecture for the new generation of the financial ecosystem. Since cryptocurrencies are notoriously known for their volatility, they are not cited to make reliable payment gateways but transfers in fiat currencies are costly and inefficient. For this reason, the network has combined the decentralization of cryptocurrencies along with the stability of fiat currencies to power the global payment ecosystem. The network offers a lot of different denominations of stablecoins including the US Dollar, South Korean Won, and the IMF’s Special Drawing Rights.
LUNA expected to skyrocket
The US dollar-denominated stablecoin, UST, has been surging in demand. The UST overtook the fourth-largest stablecoin in terms of market capitalization, DAI, and now stands at the rank itself. And that is not all. The growth of the UST has had a domino effect for the network and it has now become the second-largest DeFi protocol in the whole cryptocurrency market – standing second only to the queen of the market. Terra has surpassed $18 billion in total value locked as its native token surges to a new all-time high. It has also overtaken the popular Binance Smart Chain.
The network has also gone live on Anyswap – now Multichain – in order to further boost the liquidity on the protocol through interoperability. Multichain’s integration has enabled Fantom users access of LUNA. Moreover, Allbridge has also introduced the first-ever bridge between Aurora and Terra.
The founder, Do Kwon, believes that the growth for the US Dollar-denominated stablecoin will surge exponentially into the next year as more and more protocols integrate and adopt the UST. Per the CEO, there are a lot of highly-anticipated projects in the pipeline for the network. So, expect LUNA to skyrocket.
