This cryptocurrency has recently surpassed Cardano and Solana in terms of market capitalization
Terra (LUNA) is a cryptocurrency that is finally gaining traction among investors in terms of market capitalization.
This week, Terra has been the best-performing large-cap cryptocurrency by a country mile ( LUNA -0.04 percent ). As of 12:10 p.m. ET, Terra had risen 6.3 percent in the last 24 hours, continuing its remarkable upward trend in market capitalization. This spike also moved this token into seventh place in market capitalization among all cryptocurrencies, just ahead of Cardano and Solana.
Bulls continue to flock to Terra’s unique algorithmic stablecoin network, prompting this decision. Terra stated this week that Luna Foundation Guard, a Terra ecosystem NGO, has raised a $1 billion Bitcoin fund for Terra’s UST stablecoin. This Bitcoin-denominated reserve diversifies Terra’s reserves while also protecting it if Terra’s peg is weakened.
This is a development in market capitalization that investors should feel enthusiastic about. Because the crypto industry moves at light speed, it isn’t easy to imagine a trigger lasting longer than a week. Unfortunately, investors seeking stablecoin exposure are currently favoring Terra’s UST and LUNA tokens.
It’s fascinating to consider the link between UST (its stablecoin) and Terra (the reserve currency burned or coined to keep UST on its peg). This Bitcoin fund, on the other hand, illustrates what the stablecoin space might look like in the future, offering investors something to get excited.
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So, what’s next in terms of market capitalization?
There are various reasons why investors could be interested in stablecoins right now. Stablecoin demand has risen in recent days due to Russia’s invasion of Ukraine and the sanctions that followed. In this climate, investors wishing to hedge this geopolitical risk should flock to a token like LUNA, which is a derivative of stablecoin (UST) demand.
The capacity of LUNA and Terra’s aggregate reserves to stabilize UST and profit from increased stablecoin demand is intriguing. For the time being, as algorithmic stablecoin options gain traction in the market, this will be a top token for many investors to keep an eye on in terms of market capitalization.