Terra’s LUNA token has risen in value the past few years, outperforming several other cryptocurrencies as this groundbreaking blockchain project gains popularity.
In recent years, the cryptocurrency market has experienced ups and downs. The total market capitalization of Cryptocurrencies was around $200 billion at the start of 2020, but it is now around $1.693 trillion after retracing from its peak of over $3 trillion in November 2021.
The current market decline since its peak in September 2021 has wiped out billions of dollars, but some coins are defying the odds, with LUNA being the best of them.
The digital token price reached an all-time high of $103.6 on December 27th, 2021, about 20,000 percent higher than its previous high of $0.53 in a year and a half.
However, the crypto market has been steadily declining since November 2021, primarily to factors such as regulation and tensions surrounding the Russian-Ukraine conflict. LUNA isn’t immune to the market’s downturn; in fact, it’s one of the best-performing big altcoins, leading the market’s comeback.
A $1,000 investment in Terra at the beginning of September 2020 would have yielded nearly $152,320 today, with LUNA currently priced at $80.73.
The adoption of blockchain network concepts and services has been a major factor in the rise in Terra prices.
Terra has also had a lot of success in the Decentralized Finance (DeFi) market recently. On December 20, 2021, Terra surpassed Binance Smart Chain (BSC) to become the second largest DeFi blockchain, garnering considerable market share.
Unlike its competitors, which have seen their total value locked (TVL) decrease over the last month, the second largest DeFi blockchain has seen a 55.98 percent surge in market share.
Terra describes itself as a next-generation blockchain payment network powered by its own LUNA token and integrated with stablecoins.
Terra is a layer-1 blockchain protocol with smart-contract capabilities that functions as a payments-focused fintech ecosystem based on algorithmic stablecoins, whose value is kept stable by internal algorithms.
Terra aims to provide easy-to-spend programmable money with minimal costs, rapid settlements, and cross-border transaction functionality.
Terra, dubbed “Alipay on the blockchain” by tech news site TechCrunch, has an interface that looks more like a mainstream fintech platform than a stablecoin network, despite the fact that it uses blockchain technology and cryptocurrency.