The Terra network features stable coins that are tied to many real-world assets such as the US Dollar, WON, and Tugrik, and is one of the most widely used stablecoins. The native token is known as LUNA currently controls the value of these stablecoins. Luna can also be used to vote in governance. UST, TerraCNY, TerraJPY, and TerraGBP are some of their stablecoins.
Terra has a variety of collaborations, including Chai (South Korean mobile payment system). Terra Alliance, which focuses on network adoption, is behind it.
How does Terra (Luna) System Work?
Stablecoins based on algorithms is available on Terra. It manages the supply of Luna and their stablecoins in order to keep the pegged coins’ value stable. Stablecoins are minted in accordance with supply and demand, thanks to the algorithm. It accomplishes this by controlling Luna, either by exchanging it for stablecoins or by burning it to regulate supply.
Terra is built on a proof-of-stake (PoS) consensus model that allows token holders to stake their Luna. Token holders verify transactions and, as a result, receive incentives based on the amount of Luna they have staked. On the Terra system, token holders (Luna) can also vote for governance.
Price Movement
Before the crash in July, the coin was being traded at the price of $22.40. It later fell down to the price of $3.91. It quickly moved upwards and tried to test its ATH around the price of $84.80 this month. At the time of writing this article, The Terra is being traded at a price of $84.28. The price has almost increased by 3% today. On the monthly time frame, we have seen an increase of almost 41.45%. Today, it has achieved its new ATH.
The Total volume at the moment is $3,436,091,781 with an increase of 9.81% in the past 24 hours. The coin is listed on coinmarketcap on the 88th spot and has a market dominance of about 1.37%.
Luna has a finite supply, the total supply of the coin is around 843M while the circulating supply is around 373M.
Price Prediction – Terra
In the long run, Luna is a highly good opportunity. According to the wallet investor, the price of Luna is to reach a value of $168.661 in a year. For a five-year plan, the price will reach a value of $532.085. The way the price of Luna has grown, the traders are even more bullish on the value and they think that it will reach even more.
