Terra Luna is showing the signs of replacing Ethereum as the number 2 cryptocurrency in the world in 2022. In the last week of Feb 2022, it recorded an unbelievable 75% growth.
Terra and Luna are two cryptos promoted by a single platform. Terra is pegged to USD, while Luna is created to counter price volatility.
When Terra prices reach more than $1, it can be automatically converted into the LUNA token. As a result, the supply is increased, and the price is lowered, ensuring the stability of the ecosystem. For those who are not very familiar with Terra, it is a stablecoin like Tether, which is pegged to the US dollar. The record climb in Terra Luna can be attributed to its stability in crisis times.
Amid the Russia-Ukraine conflict, Terra Luna and Tether have become the cryptocurrency of choice for Russian Oligarchs and millionaires. With the Russian rouble reaching an all-time low, Terra Luna offers Russians to safeguard their investments and assets.
At the time of writing, Terra Luna’s price has reached $99. Terra’s surge has been rapid – 115% rise in February alone compared with 9% growth in ETH. The demand for Terra protocol has been rising because of many reasons. One of them is burning more than 29 million Terra Luna tokens worth a whopping $2.57 billion.
Terra Luna, like Ethereum, works on the Proof of Stake consensus mechanism. Many believe that it will soon eclipse Ethereum to climb to second in the list of most-valued cryptocurrencies.