Since the mid-May collapse of Terra (LUNA) and its stablecoinTerraUSD (UST), dozens of protocols have chosen to move to Polygon Network (MATIC).

The global cryptocurrency market is finally above US$1 Trillion. The LUNA price after following an extended consolidated trend surged significantly high ranging beyond the 200-day MA levels. The bears are attempting to drag the price back below these levels, but bulls appear to be well in place, poised to uplift the price to US$2 soon. The prices are expected to consolidate for a while and after accumulating significant strength may resume with a firm upward movement. However, unless the LUNA price surpasses the crucial resistance levels at US$2.2, fewer chances of maintaining the upswing emerge.

Terra is a blockchain protocol that uses fiat-pegged stablecoins to power price-stable global payment systems. According to its white paper, Terra combines the price stability and wide adoption of fiat currencies with the censorship resistance of Bitcoin (BTC) and offers fast and affordable settlements.

Development on Terra began in January 2018, and its mainnet was officially launched in April 2019. As of September 2021, it offers stablecoins pegged to the U.S. dollar, South Korean won, Mongolian tugrik, and the International Monetary Fund’s Special Drawing Rights basket of currencies — and it intends to roll out additional options.

Terra’s native token, LUNA, is used to stabilize the price of the protocol’s stablecoins. LUNA holders are also able to submit and vote on governance proposals, giving it the functionality of a governance token. Terra seeks to set itself apart through its use of fiat-pegged stablecoins, stating that it combines the borderless benefits of cryptocurrencies with the day-to-day price stability of fiat currencies. It keeps its one-to-one peg through an algorithm that automatically adjusts stablecoin supply based on its demand. It does so by incentivizing LUNA holders to swap LUNA and stablecoins at profitable exchange rates, as needed, to either expand or contract the stablecoin supply to match demand.

 

Reasons to Invest in Terra Luna this July 2022

 

Existing developer base. 

While the new Terra Luna may not have a clear roadmap, it has a vast network of developers and validators currently building its future. In the past week, these developers succeeded in a series of new updates on Terra Station mobile: a new dashboard, a means to vote on governance proposals, a means to manage NFT assets, interaction with smart contracts, color themes, and more.

 

Decentralized network.

If cryptocurrencies are supposed to be about decentralization, then Terra Luna is one of the most real crypto projects currently on the market. A huge 70% of LUNA was airdropped to the community in late May – Solana meanwhile has as much as 48% of the SOL supply held by the development team and VC purchased tokens, Binance as much as 50%, Avalanche as much as 42% and Near Protocol as much as 38%. With the community in control of all funding, it makes the new Terra Luna network uniquely decentralized and democratic.

 

No more algorithms.

The Terra Classic blockchain was built around the algorithm that maintained TerraUSD’sUS$1 peg and the price of Luna (now Luna Classic). That algorithm is not present in the new Terra ecosystem – in fact, there is no stablecoin as of yet. Few crypto projects launch with such a well-known name and an existing base of developers.

 

Determination. 

The large existing Luna holder base that lost funds in the Terra Luna and UST collapse will continue to receive new Terra Luna tokens over the next two years. Many disaffected investors are intent on regaining their losses – some of which totaled over six figures. These investors will be bullish on Luna projects and willing to hold onto tokens until prices are positive for selling.

 

Quality protocols. 

Pre-existing protocols are getting ready to launch on the Terra 2.0 network. These include Prism Protocol, Sigma Finance, Nebula Protocol, and Astroport – a leading decentralized marketplace.