According to research and statistics, Luna, the native token of the Terra blockchain, has increased by over 23% in just seven days. Its recent all-time high was $103, which dropped down to the current $97. Note that Luna started below $1 at the beginning of 2022 and it’s now ranked among the top currencies by market value.
There’s a lot of talk around Terra and its native token the Luna coin and it’s crucial that you research the risks before investing. Many experts see cryptocurrencies as unpredictable, speculative investments since their prices are always changing. They could move up or down at any time. Read on to learn more about this currency before making your move.
Terra Overview
The Terra blockchain was created in 2018 to serve as a foundation for developing a decentralized finance ecosystem. The DeFi space revolves around issuing algorithmic stablecoins, which are cryptocurrencies pegged to reserve assets such as the U.S. dollar, and maintaining their value stability. Stablecoins are often used for lending or borrowing applications within the DeFi sphere.
With a valuation of almost $18 billion, Terra has become the second-biggest DeFi protocol behind Ethereum. According to its white paper, Terra utilizes a proof of stake model, where validators check transactions depending on how many coins they hold, instead of other methods such as proof of work. People who back proof of stake argue that it demands considerably less energy and is more eco-friendly than other models.
Investors should be aware that Luna, Terra’s native token, is not only used to give governance rights and voting power for the protocol but also to regulate Terra’s stablecoin pegs. This means that if something were happening with the stablecoins on the Terra platform, it could damage Luna.
Benefits of Terra
Terra (LUNA) has a number of advantages, making it perfect for the digital economy. Specifically, its decentralized and permissionless structure allows for programmable payment options and ease of use when logistics develop or change. Additionally, the infrastructure is designed specifically to streamline dApp creation as well as ensure stability for all users.
Interoperability
Terra’s specialty is interoperability. The network was designed to run on several chains at once, linked together by the Cosmos IBC. In the future, developers hope to include other successful blockchains in their protocol.
Programmable
Terra’s focus lies in development, giving programmers the ability to create smart contracts using Rust, Go, or AssemblyScript. You can also bolster your dApp’s functionality by making use of Terra’s oracles. Think of them as off-chain sensors that communicate data between the blockchain and external sources. Oracles are an integral part of many blockchain networks–especially when it comes to price discovery tasks.
Streamlined Financial
The development team’s primary focus while creating Terra was to construct a transparent ecosystem. With the goal of simplifying the payments value chain, they built the network from scratch. In other words, by implementing a single blockchain layer, Terra assists in reducing or entirely removing the reliance on credit card networks, banks, and payment gateways.
Luna Associated Risks
Before investing in cryptocurrencies, always remember that you could lose the entire amount you put in because of their volatile nature. Get yourself familiar with the risks involved so that you can make an informed decision.
The greatest risk associated with investing in Luna is that Terra’s stablecoins could decline in value, thereby affecting Luna’s performance as it acts as a buffer for the more volatile currency.
Even though Terra’s stablecoins are doing well at the moment, it’s impossible to know how any asset will perform in the future. Volatility and bear markets could still have an impact, as they do with all other currencies on the market.
Buying Luna Coin
You can buy the Luna coin at any trusted and verified exchange online, and afterward, store it in your wallet. Make sure you use a strong password in order to protect your coins. Not only Luna increases your chances of profits, but it also helps you intensify your crypto portfolio.
Bottom Line
Overall, Luna coin is a good investment for those who are looking to get into the cryptocurrency market. While it’s been on the market for several years only, it has shown a lot of potential and growth in the short time since it was released. With a low price point and a strong community backing it, Luna coin is worth considering for anyone interested in investing in cryptocurrency.
TechnologyHQ is a platform about business insights, tech, 4IR, digital transformation, AI, Blockchain, Cybersecurity, and social media for businesses.
We manage social media groups with more than 200,000 members with almost 100% engagement.
