Towards the moon? Terra’s Crypto Luna Coin Rises Almost 80% In One Week, Outpacing Shiba Inu And Avalanche | Currency News | Financial and business news

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The name “luna” echoes the cry of crypto fans “to the moon”.

Albert Garnelis / Getty Images

Terra’s luna cryptocurrency gained around 80% in a week, making it bigger than either the shiba inu or the avalanche. A network upgrade and upcoming changes in the way users report their tax obligations have driven the hike. JPMorgan’s Nikolaos Panigirtzoglou recently said that terra’s stablecoin mechanism means it is good for cross-border payments.

Terraform Labs’ Luna is quickly becoming one of the top performers in the crypto market, having gained around 80% in value in the last week alone.

The gains are due to a combination of declining token supply and a series of changes in how the coin is used in its own payment network.

Luna even overtook dogecoin’s darling shiba inu and avalanche “ethereum killer” avax to become the 11th largest cryptocurrency by market value, according to data from CoinMarketCap.

The Terra blockchain was launched in January 2018 and uses fiat-anchored stablecoins to run its payment system. Its native luna token is then used to stabilize the price of TerraUSD stablecoin, backed by an algorithm, protocol, UST. According to its white paper, luna holders can submit and vote on their own governance proposals.

This week, investors voted in favor of community funding for an overhaul of the network’s “TrackTerra” tax and reporting application. This will allow Luna holders to export transactions to different tax software, according to a tweet from developer Terra.

The US government is tightening the rules regarding tax obligations arising from cryptocurrency transactions. It was one of the catalysts that brought bitcoin, ether, and other major coins down in November, when Joe Biden’s Infrastructure Bill – which includes crypto regulations – was enacted. .

Luna has been one of the top performing major cryptocurrencies for the past seven days, much to the enthusiasm of its community of “LUNAtic” supporters. The price rose 7.2% to $ 67.83 within 24 hours until 6:45 a.m. ET on Friday, raising its market cap above $ 26 billion. Earlier today, it hit a record high of $ 70.46 on the Binance exchange.

Its network rolled out a major upgrade last month, aimed at better maintaining the anchoring of TerraUSD at its fiat value. In turn, this resulted in the “burning” of more than 93 million luna tokens, which effectively disappeared from circulation, according to FX Leaders analyst Aiswarya Gopan.

Part of Luna’s popularity comes from the rapid evolution of decentralized finance. With competitors such as Avalanche and Solana, terra has gobbled up market share from leading DeFi blockchain ethereum, thanks to its faster transaction speed and lower “gasoline” fees.

JPMorgan currency strategist Nikolaos Panigirtzoglou highlighted Terra’s advantages over some competing protocols in a recent research note.

“Terra is a stablecoins issuance platform using a mechanism that minimizes volatility to achieve a tight peg of stablecoins issued to fiat currencies,” he said.

“This mechanism, operating through a dynamic expansion and contraction of the token supply, issues several regional stablecoins that can be exchanged, making the Terra platform particularly suitable for cross-border payments,” he added. .

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