If you are reading this, you already know about Bitcoin, Satoshi Nakamoto, the funny Memes Coins like Dogecoin, and several other trends in the Crypto market.
As a crypto trader or investor, you will find yourself looking for a better and newer cryptocurrency to invest in. Now, what are the cryptocurrencies that you can invest in besides Bitcoin?
Ethereum, Shiba Inu, Tether, and Solana are some common alternatives. Many investors even invest in USD coins because of their backup assets. But have you heard of Terra Luna? This Cryptocurrency is also a good investment and has been in the talk lately.
The current market cap of this cryptocurrency is $40,409,594,506. Each of the tokens of the Terra blockchain is priced at $116.
If you are looking for a new Cryptocurrency to invest in, then Terra’s token Luna is a good choice to consider.
What is Terra Blockchain? What are its features? Is investing in the Terra Blockchain a good choice? If you have all of these questions, then you will have your answers in the following article.
What Is Terra Blockchain?
Terra is an open-source blockchain used for decentralized payment. This Blockchain for algorithmic stablecoins allows the stablecoins to peg against fiat currency. On this Blockchain, users can spend, exchange, save, or trade the Terra stablecoins.
The unique feature of the terra platform is creating unique and new stablecoins that consistently track the price of any fiat currency. There are two unique tokens on the Terra blockchain– Terra and Luna.
Terra Luna Blockchain Features
The key features of the Terra and Luna tokens are as follows–
- Terra is an open-source blockchain that supports stablecoins and has an increasing network of financial applications.
- Aside from being a blockchain, Terra is also among the two tokens available in this Blockchain. Another token in the same Blockchain is named luna.
- Terra and Luna function differently. While Terra tracks the price of fiat currencies like USD and Euro, Luna deals with governance and mining.
- Terra protocol maintains the balance of the Cryptocurrency’s price by keeping track of the supply and demand of the token. Luna works as the variable counterweight to help Terra achieve this goal.
What Is Terra?
Terra is one of two tokens of the Terra platform. It helps track the price of the various fiat currencies like USD and Euro. There are several denominations of the Terra Stablecoin; for instance, Terra USD tracks the U.S. dollar, Terra SDR tracks IMF’s special drawing rights, and TerraKRT tracks the South Korean won.
What Is Luna?
Luna is another crypto token in the Terra blockchain. This token is used for governance and mining. The staking token of the Terra protocol absorbs the Terra stable coin. With the growth of the Terra blockchain, the worth of Luna also increases.
How Does The Tera Blockchain Work?
The benefit of the terra tokens is that you can use them as fiat currencies with Blockchain technology. The value of stablecoins is in their quality to maintain their price peg. The protocol of Terra maintains this balance through the supply and demand of stable coins.
But how does this platform work? Here is more–
Expansion And Contraction
You can take the whole Terra and Luna ecosystem as two pools– one for Luna and another for Terra. Both of these tokens add to or subtract from the supply pool of each of the Crypto token supply pools.
The users can burn the Luna tokens to mint Terra and do the vice-versa to do the opposite.
Expansion
During the high price of the Terra token and the low supply, the protocol incentivizes the users to burn their Luna tokens and mint Terra. Then, the price reaches a balanced state with a new supply of the Terra token in the supply pool. On the other hand, the Luna pool shrinks smaller, making the price of the coin decrease.
Contraction
On the contrary– when the supply of the terra token is too high and the demand is comparatively low, the protocol incentivizes the users to burn Terra and mint Luna. As a result, The balance returns at the price of a Terra coin. With more Luna minted by burning Terra, the price reaches its targeted goal.
The modulating process through expansion and contraction helps the platform to keep a balance between the price of two of its tokens.
Is Terra Luna a Good Investment?
This Cryptocurrency has a sizable market cap that stands at 40,409,594,506 as of April 2022. The current market cap-wise rank of this token is 7th. This Cryptocurrency is valued at $116 as of April 2022. According to statistics, this Cryptocurrency surged by 15000%.
So, if you look at these statistics, Terra appeals as a profitable investment for the upcoming years. Indeed it is not at the scale of Bitcoin, but in the future, these cryptocurrencies have the potential to deliver higher payout.
Frequently Asked Questions
Now that you know about this Cryptocurrency, here are some questions that you may be curious about–
Probably not. There is little possibility for this Cryptocurrency to reach $1000 before 2025. But if it keeps up the current pace, Cryptocurrency may reach a value near $1000 within 2030.
There are many speculations and predictions regarding the price of Luna crypto going up to $1000. Many experts are predicting that the price of this Crypto will exceed $1000 by 2029.
Luna is possibly a good investment option. Similar to the other Cryptocurrencies, Luna is also volatile Crypto. Since the token has been acting very bullish for the past few years, many consider it a good investment.
Read Before Investing In Terra
Like most cryptocurrencies, Terra is also a volatile cryptocurrency. The price may be high today, but it may go down sooner. If you are an investor, you need to understand the risk before investing in any of the two tokens on this platform. We have gone through the market statistics to bring out the best possible data regarding this Cryptocurrency. But if you are good at understanding the market, you can carry on with your investment in this platform.
Also, if you have any further queries, you can ask us in the comment section.
