The follower of the crypto market is fully aware of the amount of volatility and volatility, which is evident in the ranking of cryptocurrencies in terms of total market capitalization.
Where what was in the top 10 in the past months is now in the ranks above 20 and some of these currencies are advancing in the ranking within the top 10 such as the digital currency LUNA.
Project Terra’s digital currency LUNA is up 5% today after a massive recovery in the cryptocurrency market, following a massive sell-off in which crypto investors lost more than $300 billion.
The digital currency LUNA is still showing gains of around 20% in the past days giving it a market cap of about $26.9 billion, according to data CoinMarketCap.
Why is the value of LUNA rising and will the rise continue?
DeFi investors are looking for alternatives to Ethereum, and projects based on the BSC blockchain are getting a lot of attention.
The Terra blockchain was launched in 2018, the project uses digital stablecoins to power its payment system and the digital currency LUNA is used to stabilize the price of the protocol’s algorithmically backed stablecoin TerraUSD.
Terraform uses algorithms to generate stablecoins whose values are fixed by pegging them to fiat currency or gold.
However, the business of Ethereum competitors such as Terra is beginning to boom, with experts calling the new category of competitors, which also includes cryptocurrencies such as “Polygon” and “Solana”, the title of Ethereum killers.
The recent boom in the cryptocurrency market due to DeFi is exciting, which has exploded onto the scene, and Luna may benefit from the transition of Proof of Stake protocols to escape Proof of Work.
Therefore, it is possible that the digital currency LUNA will continue to expand and adopt in light of the delay of Ethereum to launch its awaited update, Ethereum 2.0, and the absence of a strong competitor to replace it until now.
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