Should you give Terra(LUNA) a chance?
Terra is one of the fastest-growing blockchain protocols in the world. It helps with the creation of cryptocurrencies with stable prices. Terra (LUNA) is the protocol’s native token, and its value has soared in recent years with the success of the project.
Should you invest in Terra (LUNA)? Our expert analysis will help you get closer to the answer!
What is Terra?
Terra was officially introduced in 2019 and has gained massive popularity since then. It boasts millions of users and impressive projects in the making. Daniel Shin and Do Kwon conceived Terra to accelerate the adoption of blockchain technology and cryptocurrency by enforcing price stability and usability.
Terra is a unique blockchain system that uses fiat-pegged stablecoins to create global payments systems with stable prices. It combines the wider adoption and acceptance of fiat currencies with the independence and censorship-resistance of Bitcoin (BTC). With Terra, you will usually experience fast and hassle-free settlements.
What is LUNA?
LUNA is Terra’s native token and the primary tool for stabilizing the price of stablecoins. Terra encourages LUNA holders to exchange LUNA and stablecoins to expand or contract the stablecoin supply at profitable rates. As a result, Terra can adjust stablecoin supply based on the existing demand. LUNA holders can also submit and vote on governance proposals since the token serves as a governance token.
You can get LUNA via several cryptocurrency exchanges where you have to trade it against fiat currencies, stablecoins or even other cryptocurrencies.
Limited Circulation of Terra (LUNA) Coins
One interesting thing to note about Terra (LUNA) coins is that they are limited in supply. The maximum circulation of the coin is capped at 1 billion tokens. In case the supply goes beyond this number, the excess LUNA is burned to restore the equilibrium supply level of the system. All new LUNA tokens are usually minted with the help of the protocol’s algorithm to ensure the stability of the price of stablecoins.
Price and cost analysis
According to Token Terminal, Terra blockchain is among the top five in terms of revenue which is a great sign for the future. As an excellent moneymaker, Terra will be able to increase the value of LUNA over time.
A total of 401,862,349.98 LUNA is in supply at the moment. It recently reached an all-time high.
As of October 12, 2021, the price of Terra Luna stands at $37.54 and there has been a price drop of $1.47 in the last 24 hours. The highest price in 24 hours was $39.21, while the lowest was $35.33. In the last seven days, the highest price has been $48.22. The stability of the price is impressive, and you will find it easy to manage Terra Luna even if you are new to the world of cryptocurrency. In the last year, the token has grown in value by 11639.6%, which has helped cement an upward trend despite the weekly drops.
There is no doubt that the future of Terra (LUNA) is bright. If you are interested, you can go ahead and research the risks and benefits of crypto investments and proceed accordingly.