A relatively little-known token called Terra (Luna) has emerged as the best bet in terms of performance and return over the past month as the cryptocurrency market has experienced extreme volatility.
In the past month, the token’s value has nearly doubled – from a low of $47 to $91 now. It has risen dramatically in the past seven days, just around the time the war in Ukraine started.
On February 24, Terra’s price hovered around $52. But it has increased since then. With the dramatic increase, Terra’s total market cap has grown to $34 billion, making it the seventh largest token, according to CoinMarketCap, a market research firm.
Terra Luna’s strong performance may be due to the uncertainty that has besieged global markets since Russian forces entered Ukraine to start a war.
Experts said this boosted crypto investors’ interest in stablecoins; Luna was the beneficiary.
Also, Singapore-based nonprofit Luna Foundation Guard (LFG) has decided to create a Bitcoin-denominated reserve as an additional layer of security for UST – Terra’s decentralized stablecoin, whose value is pegged 1:1 to the US dollar.
Terra is a blockchain protocol that uses fiat-pegged stablecoins to power price-stable global payment systems.
It was founded in January 2018 by Daniel Shin and Do Kwon, who conceived the project to boost the rapid adoption of blockchain technology by focusing on price stability.
Terra has established several partnerships with payment platforms, most notably in Asia-Pacific. It is also supported by companies and platforms advocating for adoption.
In February 2019, the company announced that e-commerce platforms from 10 different countries were members of the alliance. This bodes well for the token in the near future.