Terra (LUNA) is on a sharp downtrend. Terra crypto had been moving downwards since establishing its all-time high at $21.98 but the market crash further fueled the bearish momentum of Terra coin. At the time of writing, the Terra coin stands at a price level of $9.70. The price has fallen nearly 30% in the past twenty-four hours. The daily trading volume is increasing with a positive change of 80% since yesterday. The cryptocurrency went as low as $8.13 during the past twenty-four hours while the high was at $14.58.
Does Terra (LUNA) have potential?
Terra is built to support decentralized stablecoins. The project merges the unique features of cryptocurrencies and stablecoins to solve the problem of volatility in the market. The network has a self-stabilizing mechanism. The elastic supply of stablecoins ensures that supply is increased/decreased to ensure the stablecoin stays pegged.
Terra runs on various blockchains – increasing interoperability and decentralization. The platform is also highly programmable with smart contracts functionality which allows users to build decentralized apps. Users can also incorporate Terra’s oracles. One of the major goals of the project is to build an open and transparent financial infrastructure and; hence, is designed to eliminate the need of complicated payment chains like credit cards, banks etc.
The Terra ecosystem is vast including many projects that are considered to have true potentials like Mirror Protocol which allows users to create tokens based on stocks to track their prices and Anchor Protocol – a lending and saving platform.
Terra ecosystem brings unique and innovative offerings into the cryptocurrency market which is why it is considered to possess potential. The native token, LUNA, has had phenomenal growth in the year with predictions as high as $200 in five years’ time.
The platform was co-founded by Daniel Shin and Do Kwon in 2018. Do Kwon is a graduate from Stanford University – majoring in computer science. After extensive work experience at Microsoft, Kwon established a telecommunications company Anfyi. Kwon has also made it to the Forbes under 30 list. Daniel Shin is an Economics major from Wharton School of Economics and has established a various successful business in quite a few sectors.
Terra is solving the problem of volatility in the cryptocurrency market – which is one of the major problems, if not the most major problem. But where there are plenty of stablecoins and other propositions to tackle the volatility, Terra proposes a unique system that has real-world use cases as well. The dual coin model is also innovative and can be utilized to increase salability in other blockchains.
Terra has real adoption in the world. Terra Alliance comprises of fifteen companies from South Korea and Southeast Asia working towards the adoption of the Terra ecosystem. Terra is bringing blockchain technology to existing products which removes the need of education in the technology.