Terra ecosystem fixes fiat currencies by the growing ecosystem.
If you’re not familiar, Terra is a blockchain protocol that uses fiat pegged stable coins to power price-stable global payment systems. According to its whitepaper, Terra combines the price stability and wide adoption of fiat currencies with the censorship resistance of Bitcoin and offers fast and affordable settlements.
Development on Terra began in 2018, and its main net officially launched in April 2019. Terra’s native token LUNA is used to stabilize the price of the protocol stable coins.
LUNA holders are also able to submit and vote on governance protocols. So, very interesting stuff from the team over at Terra. They got some very ambitious and unique goals that they are wanting to achieve and are setting out to accomplish here in the world, but what is it that makes Terra unique exactly.
Terra seeks to set itself apart through its use of fiat peg stable coins stating that it combines the borderless benefits of cryptocurrencies with the day-to-day price stability of fiat currencies. It keeps its one-to-one peg through an algorithm that automatically adjusts stablecoin’s supply based on its demand. It does so by incentivizing LUNA holders to swap LUNA and stable coins at profitable exchange rates as needed to either expand or contract the stablecoin supply to match demand.
Terra has established a number of partnerships with payment platforms, particularly in the Asia Pacific region. In July 2019, Terra announced a partnership with Chai, a South Korea-based mobile payments application in which purchases are made using the application on e-commerce platforms and are processed via the Terra blockchain network.
Each transaction is subject to, on average, a 2% — 3fee charged to the merchant. In addition, Terra is also supported by the Terra Alliance, which is a group of businesses and platforms advocating for the adoption of Terra.
In February 2019, the company announced that e-commerce platforms from 10 different countries representing a user base of 45 million and a gross merchandise value of 25 billion dollars were members of the alliance.
That brings us to today, where Terra and the LUNA token are currently sitting at 29.7% at Terra the time of writing this post, which is up 14% here on the day, and we’re looking at a live market cap of 11 billion dollars, and a 24-hour trading volume of 2.3 billion.
We also have that current circulating supply of 408 million LUNA tokens, and to be honest, it’s really quite interesting to see a coin not only try to bridge the gap between cryptocurrencies and fiat currencies but to create a platform that incentivizes the use of both.
I hear a lot of times that oh Bitcoin are going to take over the dollar or Ethereum’s taking over Bitcoin, or it has to be one way or the other, but for Terra and the LUNA token, it seems as though they’re benefiting from both currencies being used, both types and I think that’s something very important to note because it seems that a lot of the perceived success of certain cryptocurrencies or certain fiat currencies dependent on the rise and fall of the opposite.
If the dollar is going to do well, then Bitcoin has to do bad, or if Bitcoin’s going to do well, then the dollar has to do bad, and I don’t know that that’s exactly the way that it needs to be. Terra is making that possibility known. You know they’re saying that it can be both we can use both they’re just used for different things they have different purposes, and they have different strengths for each one, you know there’s the stability that you have from the from a US dollar or from another type of currency, and then you have the confidentiality the decentralization of a cryptocurrency like Bitcoin, Ethereum or Cardano.
I think that’s a very important thing to note. It doesn’t have to be one or the other. We can both use these currencies and two with their respective advantages to their perspective strengths and be all-around more secure and better with our money. If we’re able to use both in a wise manner, and I think that’s very important to note and very cool for Terra to kind of make that their business model and base their platform off, use of both because in that aspect they win either way you know, if the dollar starts being used more than their platform will still be used because you’re exchanging one currency for another using Terra and the LUNA token and like I said they incentivize the use of either one as long as they’re being exchanged through Terra using the LUNA token.
They win either way, which is a very important thing to know as an investor. You want to know that you have stability and strength in your investment that’s. One of the biggest things you can get from an investment is having strength, stability, and confidence that you’re investing your money into the right thing.
We work hard for our money. We want to make sure it’s going to the right place. We want to make sure that it’s going to keep its value and hopefully obviously grow in value, and you know Terra is a great opportunity to do just that. We’re up 70% over the last week and up over 200 percent over just the last month. So, big gains, and Terra is one of the best coins coming back from the crypto dip that we saw over the last few months coming back with a passion with a fury, and we’re up against big today and this month.
So that’s Terra. In a nutshell, I do think we have yet to see the best from this coin. We’re currently at ranked number 14 as far as all cryptocurrencies on the market, and I do think the biggest things are yet to come for Terra.
I’ve seen a number of different price predictions price analyses from different websites, different people for Terra, and one of the biggest ones that I saw was that it could reach 270 dollars by 2025, and possibly over $100 dollars before the end of the year.
We have to manage our expectations when we say these things, but if that’s even a possibility, it’s a very big deal for Terra and a very big deal for you as a prospective buyer as possibly a holder of Terra you want to know potentially where it could go in the future and like I said the biggest things are yet to come from Terra and $270 in the next few years doesn’t seem too unrealistic for what they’re looking to set out to do and the way that it’s looking right now.
Obviously, this is not financial advice. This is simply my opinion, but it is one that I stand by, so take it for what it’s worth. I do think this is a great coin to look into and a very ambitious goal, a very safe bet in my opinion because you are leveraging the power from stable coins from fiat currency and also cryptocurrencies.
Categories: CRYPTO PROJECTS