During the crypto market bull run, it’s important to put capital into strong crypto assets that are winners. In the current market, there are several assets that have shown their strength in several occasions. One of them is Terra (LUNA).
Terra has the 11th largest market cap, according to CoinGecko data. The market cap of Terra is $18 billion, and the price of LUNA is $44. At the start of this year, LUNA was only $0,4. Therefore, Terra has experience a 100x growth in less than a year!
Let’s know Terra better and see if it can grow further into the bull market.
The Terra Blockchain
Terra is a blockchain developed by Terraform Labs in early 2018, by Daniel Shin and Do Kwon. It uses the Cosmos SDK and the Tendermint Delegated-Proof-of-Stake (DPoS) consensus.
This protocol involves 130 validators that are randomly chosen based on the size of their stake. The validators are responsible for verifying and settling transactions, and securing the network.
LUNA token owners can become delegators by delegating their token to these validators. Both validators and delegators share the same responsibility and risk. Any bad actors that try to harm Terra’s network will receive a penalty applied to their staked capital.
Terraform Labs manages the development of Terra. LUNA owners can get involved in governance by staking their tokens. Terra validators can submit improvement proposal and use their staked LUNA as voting rights to grow the protocol.
Using LUNA and UST
Terra is focused on developing its algorithmic stablecoin, known as TerraUSD (UST). TerraUSD was launched in September last year, and within a short time, it has become the fifth largest stablecoin based on market cap.
This token is the key component in the Terra ecosystem. It uses an elastic monetary policy to achieve price stability by adjusting the UST supply based the fluctuations of real-time demand.
Both LUNA and UST are used for Terra’s DeFi applications. There are many DeFi uses on Terra, such as TerraSwap, a decentralized exchange to swap between tokens in the Terra ecosystem.
Another application is Anchor Protocol, a decentralized savings account that offers high yield up to 20% for UST deposits. Anchor is one of the most popular DeFi applications on Terra, with a total assets under management size of US$3,3 billion.
Many other projects are growing in the Terra ecosystem. The strong growth coupled with a focused and dedicated development team shows that Terra is one of the winning crypto assets in the market.
LUNA Price Analysis
The LUNA/USDT chart on BigoMex exchange shows that LUNA is in a bullish pattern. It has a higher high and a higher low price, meaning that the price is currently trending up. This move is supported with an increase in the volume.
A safe trade would be to wait for a break above the previous all time high at $49 to open a long position. If the price falls below $39 beneath support, then traders can open a short position.
Traders can open a long or short position in BigoMex. LUNA is available in the Innovation section of contracts trading. The minimum margin to open a position is 2 USDT, so beginner traders can join the Terra bullish trend and make profit from this winning crypto asset.
