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Terra recorded a whopping 75% growth in the last week of February, amidst the escalating crypto crisis.
The cryptocurrency market is down with a war waging in one corner of the world. Amidst this chaos, Terra is found to be marching ahead in the past couple of months. In terms of performance, LUNA has emerged as a leading cryptocurrency. And this is all happening in spite of cryptocurrency market recurring losses of around US$1 billion. It has registered 75% growth in the last of February alone and this streak continues in March and probably in April too.
Terra and LUNA are cryptocurrencies supported by Terra blockchain, which is designed to disrupt the decentralized financial system. While Terra is a stablecoin that is pegged with the US dollar, LUNA counters the volatility challenges. The platform’s unique features include the convertibility of Terra tokens into LUNA when Terra’s price moves above US$1. The consequential increase in supply with a lower price enables the crypto’s stability. Owing to this factor, the stable coin outperformed its peers on monthly, weekly, and day-wise timelines. Last month, Terra’s price has picked up by 115% while Bitcoin and Ethereum registered only 12.25% and 9% respectively. Experts say, these developments clearly indicate LUNA’s dominance in 2022.
Why LUNA is reigning the price charts?
In the past month, Terra’s price has gone up by 75%, which put the cryptocurrency’s value at US$91.50. However, the majority of the gains were recorded in the last week of February, especially on the 28th. On the last day alone, Terra’s price recorded a 26% growth. This is huge news because LUNA is performing in contrast with Bitcoin recently. Even when top cryptocurrencies are facing severe economic blows, Terra has gained in value.
However, a few factors are triggering the price recently. One of them is cryptocurrency burning. According to a report by Smart Stake, Terra protocol burned over 29 million LUNA tokens worth US$2.57 billion. The increasing demand and less supply are expected to trigger Terra’s price even further.
Another reason for LUNA’s growth was the announcement that Terra will be backed by a US$1 billion Bitcoin reserve. Many investors believe that this move will give a big reason for the stablecoin to be bullish. What interests people the most about Terra is its nature of functioning. Unlike other stablecoins, Terra is not directly linked to any fiat currency. Rather, it is connected to the US dollar through a minting process for LUNA, which gives an edge to the cryptocurrency.
Ethereum lost to Terra on Staking Grounds
After Bitcoin, Ethereum is considered as a major staking cryptocurrency in the market. But maybe not anymore. The strong price surge in the past month has made LUNA, the second-largest staked asset in terms of staked value. The stablecoin occupied the long-stood Ethereum’s position. There is currently US$30 billion worth of LUNA staking while Ethereum is at US$27.5 billion. In a nutshell, the outstanding features of Terra and its functioning system has stolen many cryptocurrency investors’ heart and investment. According to experts, LUNA might record astonishing growth in 2022 and beyond.