The digital token has outperformed crypto markets and other major peers in recent parameters including a month, week, and 24-hour timeline.
Terra has more than doubled in the last month, reaching 115 percent. The token has risen around 85 percent in the last week. The voucher has gone up to 30 percent within 24 hours.
With a sharp rise in valuations, Terra's total market capitalization rose to $33.6 billion, making it the seventh largest cryptocurrency, surpassing Solana and Cardano.
Jay Hao, CEO of OKX, said that the crypto market is witnessing a surge in demand for stablecoins that is driving the bullish trend in Terra prices.
โThe Terra ecosystem has gotten a lot of attention from investors following the recent launch of Terra-based ETFs,โ he added. "It is expected to continue to be an important part of the global payment system due to its fiat-backed protocol."
There are multiple factors that can well be attributed to the rise as Terra is seen as serious competition for Ethereum. However, several tokens have attempted to become 'Etheruem Killers'.
Crypto adoption is increasing globally, which is also driving the deployment of Terra block chain on various projects in Defi, NFT and Web3, said Shivam Thakral, CEO of BuyUcoin.
โLuna Foundation Guard has recently raised $1 billion to create a Bitcoin-led reserve for the UST stablecoin that may have piqued investor interest in the Terra ecosystem,โ it adds.
Furthermore, it has offered incentives to attract investors to its DeFi ecosystem and has increased the demand for stablecoins. ETH may have the largest DeFi protocol, but the Terra ecosystem already has 13 integrated DeFi protocols, in a short period of time.
Terra's burn mechanism is another factor that adds to the rally. The objective of burning LUNA tokens from the community fund was to create a scarcity of the asset and increase its price.
Pratik Gauri, CEO and founder of 5 ire, said that it appears investors have also become more bullish due to the algorithmic and decentralized nature of the stabilization mechanism.
Innovation is the key that has created the entire DeFi giant and has kept liquid staking afloat even during a bear market, Gauri said.
Terra is known to be one of the fastest growing cryptocurrencies on the market. Terra aims to combine the price stability and wide adoption of fiat currencies with the censorship resistance of Bitcoin and offers fast and affordable settlements.
This rise is proof of how sustainable Blockchain projects are not dependent on global conditions, said Harman Puri, Metaverse Director, Asgard Dao.
"Terra's use in the fintech space and its strong infrastructure providing an algorithmic stablecoin with top security is playing a key role in the decentralized finance world," he added.
Despite the latest developments in the crypto market, Terra still has the potential to outperform the majors. crypto assets. With the growing popularity of the metaverse, Terra currently has great scope to grow even more.
