If you’re wondering what is Luna crypto, you’ve come to the right place. In this article, we’ll talk about how it works, why it’s a stablecoin, how it’s used in Terra, and how its price is determined by fiat currency. But before we get into that, let’s quickly review LUNA’s basics. Read on to discover why this crypto currency is so important and how you can get involved.
LUNA is a stablecoin
LUNA is a stablecoin that protects investors against volatility. It started out at $0.66 and ended the year at $89, demonstrating the potential it has. The cryptocurrency was backed by Securipop (SECR) which focuses on providing a secure layer of communication for its users. Its price has dropped nearly 30% since it peaked in early April at $116, but the future looks bright for the crypto.
Although the supply of LUNA tokens is capped at one billion, the network is designed to burn coins that exceed this number. Currently, 26% of LUNA is allocated to private sales by LUNA token holders. Another 20% goes to Terra Alliance employees and project contributors. Ten percent is reserved for Terraform Labs. The LUNA network also allots 4% of coins to its Genesis Liquidity quotation on exchanges.
Terra uses LUNA as its reserve currency
Terra is a fully digital, decentralized financial institution that uses its own cryptocurrency as its reserve currency. Its customers can earn interest on their assets, spend their funds through its payment system, and even invest in synthetic stocks. The Terra token underpins the company and acts as its governance and staking token. The Terra blockchain is based on the proof-of-stake consensus algorithm, allowing it to delegate the validation of transactions.
The founder of Terra, Do Kwon, has said that he wants to bring the “peg” back. Earlier this year, Kwon tweeted that he would be buying $10 billion in bitcoin as a backstop for the UST, which would then serve as the reserve currency for the entire Terra ecosystem. But since then, the UST has been soaring, and Kwon has made clear that he wants to bring it back.
Terra uses LUNA as a staking token for mining transactions
In order to mine in Terra, you must stake LUNA. Staking involves locking coins or tokens in a contract address and waiting for a reward. The Terra platform allows only a small number of validators. The validator has the right to choose the amount they stake and is rewarded proportionately for their efforts. In addition, validators can only stake LUNA to the extent that they meet the quorum. If the quorum is met, the proposal is implemented. A validator’s share depends on his stake and his commission rate.
The Terra platform allows a maximum of 58 million LUNA to be burned at a time, which is a significant amount. Nevertheless, the Terra platform has robust levers to control the monetary policy and minimize supply volatility. The total supply of LUNA is below one billion LUNA, so the amount of supply is relatively stable. If Terra’s supply drops below this amount, then Terra will burn LUNA tokens in order to mint UST.
LUNA price in fiat currency
If you’re considering a long-term investment, LUNA’s projected price in fiat currency has a lot to do with your attitude to risk. You might think that LUNA is too volatile to be a good choice for an investment, but the reality is much more complex. For example, a market crash could cause LUNA to fall by as much as 99%. However, that’s far from true. LUNA’s price can increase significantly as long as you have a diversified investment portfolio. In this case, you can use a dedicated exchange rate converter to lookup the price of LUNA.
While LUNA is currently trading around $8, LUNA’s price is rising in tandem with the price of other cryptocurrencies. LUNA is currently a promising crypto to watch. The price of LUNA can rise significantly if it can maintain its price peg with the terraUSD, which is one of its sister tokens. It’s possible that LUNA’s price will climb even higher as LUNA gains in popularity.
LUNA price in eToro
The LUNA crypto price in eTero is based on the larger cryptocurrency market. The LUNA token was introduced to the market in February 2019 via an ICO, selling for $0.8 per token. It was introduced as a groundbreaking solution for mainstream crypto adoption, but received a cold welcome from the cryptoverse. The LUNA cryptocurrency’s price declined and it reported low investor interest throughout 2019 and 2020. Furthermore, few new Terra Wallets were created as a result of the ICO.
In addition to eToro’s market cap, Terra developers also launched a mobile wallet and a web wallet. These wallets allow users to send and receive LUNA cryptocurrency. Additionally, these wallets allow users to earn interest on their LUNA coins through decentralized applications. In a recent article in Coinjournal, developers of LUNA crypto suggested that LUNA users buy during dips in the market.
LUNA price in Coinbase
The LUNA crypto price in Coinbase recently dipped to a low of $1.30, its lowest level since August 2021. The reason for the drop was the depegging of the U.S. dollar, which sent the cryptocurrency’s price tumbling. As a result, the price fell 92% over the past week and 7% in the last hour. In comparison, the coin’s lifetime highs were $119 in April 2022.
In order to determine how much LUNA is worth, you should use a converter. CoinMarketCap’s converter can be used on the Terra currency page, but you can also use a dedicated LUNA exchange rate calculator. Popular LUNA price pairs include USD, GBP, AUD, and JPY. LUNA is a good investment if you want to get started in crypto.