This article was translated from our Spanish edition using AI technologies. Errors may exist due to this process.
The history of cryptocurrencies has not been the most stable, with very large drops followed by market rises. Last weekend, Bitcoin suffered a almost 30% crash due to BitMart breakage. At the same time, digital currency Earth has secured its place in the top 10 of the most important cryptocurrencies of the moment by moving Dogecoin at # 11.
Terra is a blockchain which is based on the Cosmos Software. It was created by a South Korean company, Terra Labs. His project wants to decentralize finances by creating applications that can easily generate crypto-currencies or “stablecoins”. Its token is called LUNA, which since the start of the year has risen in value by more than 10,000 percent. On November 25 it was worth $ 16 billion and by the first week of December it was already $ 29 billion.
Its growth so fast is due to the fact that updating its protocol has activated a burning mechanism, which makes the LUNA token disappear and, since it is rarer, its value increases.
âAdded to this is the good functioning of the Terraform Labs team, which investors really appreciate, and therefore they are supporting them by purchasing more tokens. The wave of Terra Tokens was sparked by a strong team performance, creating more and more value over the months. The work they have done is currently reflected in the prices, âsaid Capital Ediciones CEO Yanina Orrego in an interview with Infobae.
Even though LUNA is down a bit since it hit its all-time high this month, data shows it continues to climb 7% per day.