Terra has shown an amazing performance in 2021, experts believe that stride will continue.
The recent crypto market spike has left investors with high expectations. More and more new investors are joining the market daily, with high hopes of gaining profits like the other crypto billionaires. Currently, there are more than 10,000 cryptocurrencies in the market, competing against each other to gain greater market capitalization. Among these is Terra, one of the fastest-growing cryptos in the market. Recently, Terra made its way into the top 10 cryptocurrencies, passing over other popular cryptos like Shiba Inu, Dogecoin, Litecoin, and others.
According to coinmarketcap, Terra’s current market cap is standing at US$32.707 billion, holding the market position as the 9th largest cryptocurrency. The crypto has rallied more than 15,000% in 2021. In theoretical terms, Terra (LUNA) is a decentralized financial infrastructure and blockchain protocol that introduces some unique concepts and theories into the market. The network leverages its native token LUNA, a stablecoin protocol, an oracle system, and smart contracts to bring users to digital currencies.
Why is Terra going up?
Supernatural returns in the crypto market is not a new trend. So, Terra’s bullish growth should also not surprise investors as much. LUNA brings several benefits to the market, the reason why so many investors are increasingly getting attracted to it. The network offers competitive programmable payments, logistics, and an infrastructure that focuses on simplifying the use of decentralized apps, and stablecoin development.
Furthermore, Terra highly focuses on interoperability. The network is designed to run on multiple chains. Currently, LUNA is active on Ethereum and Solana, but its developers have announced plans to expand their protocol to include other major blockchain networks in the future. The team’s primary goal is to build a transparent ecosystem from the grassroots and replace the complicated payments value chain.
Besides all this, Terra utilizes a community-based governance mechanism. Validators gain voting rights regarding crucial network updates. These updates can include technical alterations, upgrades, and much more. Basically, any validator can submit proposals to get voted on by the community.
In the initial phase of Terra, the crypto did not see much acceptance from the investors. Undoubtedly, Terra emerged as a leader in 2021 and grabbed a top position in the market. Several experts believe that in 2022, Terra might cross the US$150 mark within the first quarter itself, some say that it might take more time. But the core of the fact is that experts expect the crypto has great future potential and will continue to grow, despite its volatility.
Is Terra a Good Investment?
So far Terra has made great strides in the crypto market. Although its volatility might be viewed as a defining feature, keeping certain investors away from it. Many experts believe that Terra can outperform other major cryptocurrencies in 2022. Even though most of its notable projects are on DeFi, but other metaverse projects are currently being developed. With an experienced leadership team, a whitepaper, and a growing community, LUNA has a lot going for it currently. It can communicate with several other blockchains and has shown incredible growth potential.
Investors can consider buying Terra only if they are willing to risk their money and not just follow the hype. Like any other cryptocurrency, Terra also has several risk factors. Besides, market analysts are not very impressed by the condition of the stablecoin landscape currently. So before diving right into it, investors should make sure that these existing conditions change.
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