This year the cryptocurrency industry has seen many highs and lows, owing to encouragement from billionaire entrepreneurs and crackdowns by authorities in China and other nations. The cryptocurrency market’s chaotic graph, however, is not unusual given its tremendous volatility. But there have been several relatively unknown digital coins that have performed exceptionally well, with one of them — Terra — gaining a massive 15,000 per cent in just one year.
According to CoinMarketCap, a market research firm, the surge has propelled Terra into the list of top 10 digital coins. Now, Terra has a market capitalisation of $28.58 billion (roughly Rs 21.59 lakh crore), far more than Dogecoin and Shiba Inu.
In the past 24 hours, Terra — which trades with the symbol LUNA — has gained another 11 per cent in value and is inching closer to overtaking Polkadot, which is just ahead of it in terms of market cap at $28.62 billion (roughly Rs 21.61 lakh crore), from the ninth position.
Terra has been one of the best-performing cryptocurrencies this year. It peaked at a value of $77.94 (roughly Rs 5,886) on December 5 from a value of less than half a dollar a year ago. On Thursday, it was trading at $75.13 (roughly Rs 5,674), rallying more than 15,000 per cent in the past year.
Such incredible returns in cryptocurrency are not a new phenomenon. In fact, this is one of the main reasons why investors flock to the cryptocurrency market. But the crypto market is also ripe with unpredictability. If a coin rises unbelievably, it can also fall sharply, washing away all the gains in one shot. Financial experts advise due diligence in investing in the cryptocurrency market.
Daniel Shin and Do Kwon founded Terra in January 2018 as a way to drive the rapid adoption of blockchain technology and cryptocurrency. Terra launched its mainnet in April 2019. Now, it offers stablecoins pegged to the US dollar, South Korean won, Mongolian tugrik, and the International Monetary Fund’s Special Drawing Rights basket of currencies.