This year, the cryptocurrency industry has seen many highs and lows, thanks to encouragement from billionaire entrepreneurs and crackdowns by authorities in China and other countries. However, the chaotic chart of the cryptocurrency market is not uncommon given its massive volatility. But there have been several relatively unknown digital coins that have performed exceptionally well, one of which – Terra – gained a staggering 15,000 percent in just one year.
According to CoinMarketCap, a market research firm, the wave has propelled Terra into the list of top 10 digital coins. Now Terra has a market cap of $28.58 billion (about Rs 21.59 lakh crore), far more than Dogecoin and Shiba Inu.
In the past 24 hours, Terra – which trades with the symbol LUNA – has risen another 11 percent in value and is closer to catching up with Polkadot, which is just ahead in terms of market cap of $28.62 billion (about Rs 21. 61 lakh crore), from ninth position.
Terra was one of the best performing cryptocurrencies this year. It peaked at $77.94 (about Rs 5,886) on Dec. 5 from a value of less than half a dollar a year ago. On Thursday, it traded at $75.13 (about Rs 5,674), up more than 15,000 percent over the past year.
Such incredible returns in cryptocurrency are not a new phenomenon. In fact, this is one of the main reasons why investors flock to the cryptocurrency market. But the crypto market is also ripe with unpredictability. If a coin rises unbelievably, it can also fall sharply, washing away all profits in one fell swoop. Financial experts advise due diligence when investing in the cryptocurrency market.
Daniel Shin and Do Kwon founded Terra in January 2018 as a way to drive the rapid adoption of blockchain technology and cryptocurrency. Terra launched its mainnet in April 2019. Now it offers stablecoins pegged to the US dollar, South Korean won, Mongolian tugrik, and the International Monetary Fund’s special drawing rights basket.