Capitalization of one of the biggest Ethereum competitors reached $34 billion in the last 24 hours
The capitalization of the Terra (LUNA) cryptocurrency has recently increased by around $3 billion, as reported by CoinMarketCap, following the recovery of the crypto market and the upcoming Fed decision, which is expected to cause a spike volatility in the market.
As the chart of one of the biggest Ethereum competitors suggests, LUNA is currently moving in a sharp uptrend in contrast to most of the cryptocurrency market. In the last 17 days, LUNA added over 64% to its price while Ethereum lost around 15% in the same period.
The speculative interest in the token and the fundamental background of the project explain the strong uptrend of LUNA. The wrapped version of the token that exposes investors on different networks like Ethereum to the token shows that Terra’s token looks nicer to investors than similar assets.
Project’s fundamental background
Terra is a blockchain protocol that utilizes fiat-pegged stablecoins for their payment ecosystem. It currently offers a whole variety of stablecoins pegged to the U.S. dollar, South Korean won, Mongolian tugrik and others.
LUNA also acts as a governance token for the network, allowing holders to submit votes on governance proposals, giving it additional functionality and use cases.
Another reason behind the growth of the token could be tied to the increased demand for stablecoins as most investors on the market are actively withdrawing their digital funds from centralized exchanges and putting them in private wallets, or DEXs.
