Terra might silently creep among the top cryptocurrencies in the market to become the king
The crypto market rose by leaps and bounds in 2021, which left investors with high expectations. Bitcoin became the center of attention for investors last year, as it drove the crypto market to new highs crossing US$3 trillion within a very short period time of time. Several other altcoins surfaced showcasing bullish price rallies one after the other. But this success was short-lived. The crypto market fell into a deep slumber by the end of 2021, and the market kept further diving down. But the crypto that rose almost 15,000% last year is slowly creeping up its way through the top cryptocurrencies. Terra can be notified as one of the fastest-growing cryptos in the market. Within a very short period of time, Terra’s LUNA made it place among the top 10 cryptocurrencies, passing over other popular cryptos like Shiba Inu, Dogecoin, Litecoin, and others. But the sudden crypto slumber affected the market drastically, taking down Terra with it. But its exceptional market performance makes experts anticipate if it has the capability to become the next crypto king silently or not.
According to coinmarketcap, the current market value of Terra (LUNA) is US$64.97, indicating a rise of almost 25.13% in the last 24 hours, and almost consistently holding its position as the 9th largest cryptocurrency in the market. To define Terra from a technical point of view, it is a blockchain protocol that uses fiat-pegged stablecoins to power price-stable global payments systems. Terra aims to combine the price stability and wide adoption of fiat currencies with the censorship-resistance of Bitcoin and offers fast and affordable settlements.
Amid the crypto scarcity in profits, the LUNA token held its position quite firmly. Experts believe that one of the many reasons why Terra has been able to stay afloat and hold its own range was due to the formation of the Luna Foundation Guard (LFG), along with the launch of RoboHero, a metaverse game for smartphones based on the LUNA token. Binance too has completed LUNA’s integration into the exchange and activated deposits for the altcoin. Currently, LUNA is showing no signs to slow down yet, as its wind has sailed on a positive note. Crypto analysts believe that soon the market will witness a rise in LUNA token price, surging as high as US$100.
Why is Terra surging right now?
The rise in LUNA’s price can be well-attributed to a few factors. Firstly, Terra is a serious competitor against Ethereum. It has offered incentives to attract investors to its DeFi ecosystem and increased demand for UST. But Terra will witness continued growth, even after the incentives have dried up. ETH might have the largest DeFi protocol, but the Terra ecosystem already has 13 DeFi protocols built on it, within such a short period of time. Another major factor due to which Terra might be going up is its burn mechanism. The point of burning LUNA tokens from the community pool was to create scarcity of the asset and boost its price.
Should you invest in Terra right now?
So far, Terra has made great strides in the crypto market. The market volatility might be an issue for some investors, but it is the prime characteristic of any digital currency. Terra definitely has the potential to outperform certain major cryptocurrencies. With the growing popularity of the metaverse, currently, Terra has a huge scope to grow further. Market analysts are pretty impressed by the condition of the stablecoin market recently, so, even this phenomenon might help Terra silently win the top cryptocurrency competition.
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