According to CoinGecko, Terraform Lab’s Luna cryptocurrency has surpassed popular dog-based meme tokens to become one of the top ten largest cryptocurrencies by market capitalization, despite a market-wide selloff that has destroyed hundreds of billions in value.
Cryptocurrencies are notoriously volatile, and even the most valuable ones, such as bitcoin and ether, are not immune to huge and rapid price swings. Bitcoin, for instance, is currently selling at roughly $43,305, since its current up and down movement. Over the past week, it has gained about 10% while Ethereum has gained about 16%. Luna, on the other hand, gained about 12% and presently sits at about $98
What is Luna Crypto, and how does it work?
Terra is a blockchain technology that uses stablecoins to keep global payment networks stable. In reality, they say that by adopting Bitcoin (BTC), they can combine price stability with fiat currencies, resulting in low-cost settlements. Volatility was a hot topic in the cryptocurrency community. It is one of the key reasons why investors are hesitant to invest in cryptos. Terra wants to fix that by introducing stablecoins that are tethered to fiat currency. Through a patented algorithm that automatically changes stablecoin supply based on demand, they would maintain a “one stablecoin to one fiat” peg. This is made possible by their LUNA token, which provides liquidity, and price stability, and is easily swappable for other stablecoins at advantageous exchange rates.
Why is LUNA on the move?
The Terra project has upgraded its infrastructure and released protocol changes. The changes focused on how users reported their taxes following international guidelines. This would provide users and investors with an additional layer of security. Many analysts believe Terra will be able to give pricing stability and will be a formidable competitor in cross-border payments in an extremely unpredictable crypto environment.
Terra, on the other side, is having similar problems with the SEC as Ripple. The SEC believes Terra is selling unregistered securities, but Terra claims this is not the case and that cryptos are not securities.
What makes Luna special?
The concept of decentralized finance, or DeFi, surged onto the forefront this year. A system like this would be built on a wide network of blockchain technology, with Ethereum which has its own coin, ETH currently being the most popular. However, other developers have emerged to challenge Ethereum’s dominance, resulting in platforms such as Solana and Avalanche, which have constructed blockchains that claim to be faster and use less energy than Ethereum. These competitors are dubbed “Ethereum killers” by industry observers because they are tackling issues that Ethereum has yet to address, such as switching to proof-of-stake protocols for crypto mining rather than proof-of-work.
Luna Technical Analysis – March 2022
Terra (LUNA) reached an all-time high of $103 in the fourth quarter of 2021, making it a highly successful fourth quarter for LUNA holders. Despite this, Terra’s price began to fall in the early days of January. The price dropped by nearly 40% in the first week of 2022, but it recovered with a 42% correction.
Nonetheless, the trend is now negative, as the new highs and lows on the longer-term chart are lower than the prior ones. After that, the price dropped another 50% before finding support around $43, which was the long-term trendline’s support level.
LUNA soared as high as $60 in February after a period of instability, while still maintaining support at that trendline, but it failed to reverse the trend. LUNA had a breakthrough in the last week of February, increasing by more than 100%. In the early days of March, the streak persisted. The pricing recently hit a new all-time high of $104 per share. The price has since retraced and is currently trading at approximately $98.
Pros of Luna
Terra (LUNA) addresses various scalability and decentralization challenges. Though most crypto projects are decentralized, executing a decentralized project efficiently is tough, which Terra excels at.
LUNA also allows different wallets, and its user-friendly interface makes it simple to comprehend. It contains a desktop application app that can be used to monitor the tokens.
Cons of Luna
There are some drawbacks to using LUNA. Although it initially costs low fees, you may be charged additional fees upon cashing out.
It’s also tough for LUNA to develop traction because multiple competitors are vying for market share. Aside from that, LUNA is a generally solid network with little room for development at the time. As a result, it’s a good project.
LUNA is now trading at $98.84 as of March 28th and has a market value of $33,604,237,031. Terra prices are down in comparison to the previous 24 hours, and volatility is also strong at the present, with a fully diluted market value of about $70,551,769,341. Since its inception, the Terra has performed admirably, with an all-time low of $0.1201 and an all-time high of $103.33.
Terra has a return on investment of 5351.97%, making it a better-than-average investment. The LUNA price has risen steadily over the last year, and it is projected that adoption will drive up the token’s price in the future.