Recent Updates on Terra Blockchain
One Ethereum rival is seen ‘heavily undervalued,’ according to a crypto analyst, who also updates his outlook on Terra (LUNA) and Solana (SOL)
A well-known cryptocurrency expert is suddenly bullish on the prospects of two Ethereum (ETH) rivals.
In a recent strategy session, the host of InvestAnswers informs his 421,000 subscribers that he’s “extremely positive” on LUNA because to Terra’s aspirations to transition from an algorithmic stablecoin project to one that is partially backed by Bitcoin (BTC).
“I adore LUNA. Because of what they have planned, I have grown almost too optimistic about LUNA. The transition from an algorithmic stablecoin to a Bitcoin-backed or partially Bitcoin-backed stablecoin might be game changer. “The sky’s the limit, I mean.”
Terra co-founder Do Kwon recently revealed that the company would be acquiring billions of dollars in BTC for its TerraUSD (UST) reserves.
According to the expert, Ethereum rival Solana (SOL) has characteristics that imply it is cheap as well.
He believes that as long as Ethereum keeps altcoin markets viable, SOL will eventually break through its resistance around $150.
“Despite being in beta status and experiencing issues back in September, this is the greatest SCP (smart contract platform) out there, but it’s grossly underestimated.” Every single measure, all 19 metrics, is out of this world. One is awful, and that is total value locked (TVL). It is not horrible, but it is not as strong as others since it does not provide the same amount of incentives… But I believe it is just a matter of time. If Ethereum reaches $4,000, I see Solana going high, fast, and far, but you never know what may happen. Avalanche may reach $200. LUNA might reach $250. Solana might be worth approximately $150…
So, for the time being, my favorite pieces are Solana number one and LUNA number two.”
At the time of writing, Terra is trading for $95.59, a 3% rise on the day, while Solana is trading for $95.19, a 2.3 percent increase in the same time frame.
Terra Bridge is now connected to Avalanche and Fantom via Axelar SDK & network.
However, Terra Bridge hasn’t yet added the ability to transfer back from Fantom to Terra.
The Terra money ecosystem in the last week has shown some signs of constantly evolving.
Besides, the released xAnchor on Anchor protocol’s 1st birthday connects and attracts a vast amount of users from other ecosystems easily. Terra is now back to the track.
MakerDAO’s DAI Fell Behind Terra’s UST Months Ago. Here’s How It’s Attempting to Catch Up
MakerDAO has either made or is considering additional improvements to aid in the adoption of their stablecoin.
Many people are probably familiar with the two major decentralized stablecoin providers: MakerDAO and Terra.
Tether (USDT) and USD Coin (USDC) are both far larger than these initiatives, however they also fail the decentralized test.
MakerDAO is the company behind the stablecoin DAI, while Terra is the company behind the rapidly rising UST stablecoin. UST just overtook Maker as the largest decentralized stablecoin by market size, despite Terra’s late entry onto the field (Maker launched in 2014 and DAI came in 2017).
For comparison, USDT has a market size of $80.8 billion, USDC has a market cap of $52.4 billion, Terra has a market cap of $15.8 billion, and DAI has a market cap of $9.3 billion.
In December, UST grabbed the lead. Some may have assumed it was a fluke at the time, similar to previous flash-in-the-pan stablecoin initiatives in the past.
However, UST has continued to rise since then.
And, as the stablecoin has grown in popularity, so has Terra’s governance token LUNA, which is currently a top ten cryptocurrency by market cap, ahead of Cardano, Solana, and Avalanche. Since UST surpassed DAI on December 20, the price of LUNA has grown from around $78 to today’s price of $93.5, a 19% increase.
It’s no surprise that these two assets are rising at the same time. This is due to the fact that LUNA gets destroyed every time additional UST is produced.
And as the Terra-based DeFi ecosystem has grown and desire for a local stablecoin has skyrocketed, tons of LUNA have been destroyed (meaning less available on the market).
About Terra
Terra is a decentralized cryptocurrency that uses stablecoins (cryptocurrencies backed by real-world assets, in this case fiat currencies) to power global payment networks with stable pricing. The project was formed in order to combine price stability, broad usage of fiat currencies, and Bitcoin’s resilience to censorship. However, unlike Bitcoin, it offers low-cost, rapid payments.
