Terra Could Emerge as the Biggest Crypto Gainer of 2022
Despite the ongoing crisis, Terra has recorded a whopping 75% growth in the last week of February
Amid the ongoing geopolitical war and worsening global financial ecosystem, Terra has made remarkable moves in the past couple of months. Despite the cryptocurrency market losing US$1 billion in market capitalization, LUNA has emerged as a front runner in terms of performance, registering a whopping 75% growth in the last week of February. The gains continue to take good shape in March and beyond.
Terra is a programmable blockchain designed to disrupt the decentralized financial sphere. Terra and LUNA are the two cryptocurrencies that the platform promotes. Terra is a stablecoin that is pegged with the US dollar while LUNA counters the volatility challenges. The platform provides an amazing feature where the Terra tokens can be converted into LUNA when Terra’s price goes above US$1. This eventually helps in increasing the supply while lowering the price, leading to more stability. Owing to its extraordinary advantage, stablecoin has outperformed its peers in various parameters like one month, week, and day timeline. In February alone, Terra’s price has gone up by 115% when Bitcoin and Ethereum registered 12.25% and 9% growth respectively. Therefore, experts have concluded that LUNA could emerge as the biggest cryptocurrency gainer in 2022.
LUNA Price Analysis
In the past month, Terra’s price has gone up by 75%, which put the cryptocurrency’s value at US$91.50. However, the majority of the gains were recorded in the last week of February, especially on the 28th. On the last day alone, Terra’s price recorded a 26% growth. This is huge news because LUNA is performing in contrast with Bitcoin recently. Even when top cryptocurrencies are facing severe economic blows, it has gained in value.
However, a few factors are triggering the price recently. One of them is cryptocurrency burning. According to a report by Smart Stake, Terra protocol burned over 29 million LUNA tokens worth US$2.57 billion. The increasing demand and less supply are expected to trigger Terra’s price even further.
Another reason for LUNA’s growth was the announcement that Terra will be backed by a US$1 billion Bitcoin reserve. Many investors believe that this move will give a big reason for the stablecoin to be bullish. What interests people the most about Terra is its nature of functioning. Unlike other stablecoins, Terra is not directly linked to any fiat currency. Rather, it is connected to the US dollar through a minting process for LUNA, which gives an edge to the cryptocurrency.
Terra Overtook Ethereum on Staking Grounds
After Bitcoin, Ethereum is considered as a major staking cryptocurrency in the market. But maybe not anymore. The strong price surge in the past month has made LUNA, the second-largest staked asset in terms of staked value. The stablecoin occupied the long-stood Ethereum’s position. There is currently US$30 billion worth of LUNA staking while Ethereum is at US$27.5 billion. In a nutshell, the outstanding features of Terra and its functioning system has stolen many cryptocurrency investors’ heart and investment. According to experts, LUNA might record astonishing growth in 2022 and beyond.