Terra (LUNA) is a decentralized blockchain protocol designed to support programmable payments and open financial infrastructure. It utilizes a suite of algorithmic stablecoins, which are stabilized by its native token, LUNA. As of the latest update, LUNA is trading at $1.72, with a 24-hour trading volume of approximately $2.2 million.
LUNA Price Overview
LUNA's current market capitalization stands at around $386 million, ranking it 83rd among cryptocurrencies. The circulating supply is 210,000,000 LUNA.
Key Metrics:
- 24h Low/High: $1.71 / $1.75
- All-Time High: $18.87
- All-Time Low: $1.19
What Is Terra (LUNA)?
Terra is a blockchain protocol that leverages algorithmic stablecoins to facilitate fast, low-cost, and borderless transactions. Its native token, LUNA, plays a critical role in maintaining the stability of Terra’s stablecoins through an innovative mint-and-burn mechanism.
The protocol also supports decentralized applications (dApps), including Anchor Protocol (a savings platform) and Mirror Protocol (for synthetic assets). Its architecture uses a Proof-of-Stake (PoS) consensus model, rewarding validators based on their staked amount and network activity.
LUNA Tokenomics
LUNA has a maximum supply cap of 1 billion tokens. The protocol algorithmically adjusts supply through burning mechanisms to maintain price stability. Initially, Luna Foundation Guard (LFG) and early investors allocated tokens strategically to support genesis liquidity and ecosystem development.
Nearly one-third of LUNA’s supply is believed to be locked in staking, reducing sell pressure on exchanges and promoting network security.
Founding Team and Development
Terra was co-founded in 2018 by Daniel Shin, a seasoned e-commerce entrepreneur, and Do Kwon, a software engineer with experience at Apple and Microsoft. The project is developed by Terraform Labs, which raised $150 million in a 2021 funding round.
Notable investors include:
- Pantera Capital
- Galaxy Digital
- Arrington XRP Capital
- Coinbase Ventures
Frequently Asked Questions
What is LUNA used for?
LUNA stabilizes Terra’s suite of stablecoins (like UST) through arbitrage and staking mechanisms. Users can also stake LUNA to earn rewards and participate in governance.
How does Terra achieve price stability?
The protocol uses an algorithmic model that expands or contracts the supply of LUNA and Terra stablecoins based on market demand, helping to peg stablecoins to their target values (e.g., USD).
Where can I track LUNA prices?
You can monitor real-time LUNA price movements and market data on various cryptocurrency tracking platforms. 👉 Check real-timeLUNA metrics here
Is LUNA a good investment?
All investments in cryptocurrencies carry risk. LUNA’s value is tied to the adoption of the Terra ecosystem and the demand for its stablecoins. Always do your own research and consider market volatility.
What happened to the original LUNA?
Following the collapse of the UST stablecoin in May 2022, the original Terra blockchain was split into Terra Classic (LUNC) and a new chain, Terra 2.0, with the new token named LUNA.
Can I stake LUNA?
Yes, LUNA uses a Proof-of-Stake system. You can delegate tokens to validators to earn staking rewards and contribute to network security.
Conclusion
Terra (LUNA) remains a notable project in the decentralized finance (DeFi) space due to its unique algorithmic stability mechanisms and growing ecosystem. While it has faced significant challenges, its foundational technology and community support continue to drive development.
For those interested in the broader crypto market, 👉 explore additional market insights and tools. Always ensure you understand the risks involved in cryptocurrency investments and make informed decisions based on up-to-date and reliable information.