Against the trend of a sell-off in the crypto market, LUNA, the native token of the Terra Network, hit a new high of US $ 59.63 this morning, after gaining 17% in the last 24 hours before to return to the United States. $ 57.70 at time of posting, according to CoinMarketCap. Meanwhile, Shina Inu Coin and Ethereum’s Ether continued to shine.
Terra’s LUNA to the moon
Currently the 13th largest blockchain in the world, Terra has gained over 800% since July and 55% in the last week alone.
“Terra is one of the stable projects that is getting a lot of attention alongside a slew of other really interesting projects,” said Jonathon Miller, Australian Managing Director of the Kraken crypto exchange. Forkast.News. “When you compare that to managing [global traditional banking services provider] Swift, you can see why stablecoins are valuable and why blockchain will continue to disrupt traditional finance.
Terra is what is called an algorithmic stablecoin project – it issues a native stablecoin called UST which is pegged to the value of the US dollar, but differs from other stablecoin projects because LUNA is used to top up the token whenever its value. begins to diverge from US $ 1. Prior to a recent network upgrade in late September called Columbus-5, LUNA that was burnt to keep UST value stable was sent to a community pool. With the new upgrade, these tokens are burned permanently, and with the reduced supply of LUNA, its price has increased accordingly.
Describing stablecoins as a “powerful tool” to unlock liquidity for global crypto investors, Miller says these tokens play an important role in the crypto ecosystem by connecting users to decentralized finance and enabling payments. transparent cross-border. In a sign of growing interest in stablecoins, earlier this year Circle, the issuer of the world’s second largest stablecoin, USDC, secured a $ 440 million investment in new funding from Digital Currency Group, among others. Most recently, the company also contributed 500 million yen (US $ 4.38 million) to a Series A funding round for JPYC Inc., the issuer of the Japanese JPYCoin stablecoin pegged to the yen.
Shiba Inu Coin supported by Kraken news
Meanwhile, Shiba Inu Coin, the Dogecoin copier that has followed the top 10 in crypto in recent weeks, rose 47% overnight as Kraken announced it was listing the token on its exchange. SHIB hit a two-week high of US $ 0.0000538 before partially returning to that ground throughout the day. Sitting just above Terra in 12th place with a market cap of nearly US $ 25 billion, SHIB was trading at US $ 0.000046 at the time of publication, according to CoinMarketCap.
“There is a powerful [community] of passionate followers on social media when it comes to SHIB and other pieces like this, but SHIB in particular seems to have a pretty loud community. And that’s something we’re responding to, ”said Miller of Kraken, regarding the decision of Kraken – the fourth largest cryptocurrency spot exchange in the world – to list Shiba Inu Coin after being diligent. reasonable. “We strive to offer our clients a wide range of assets with the infrastructure that enables people [and] counterparties to come and exchange.
Reaching a new high of US $ 0.00008845 at the end of October, Shiba Inu Coin briefly overtook Dogecoin as the market’s top memecoin by reaching the seventh position in the market capitalization rankings. Despite this recent price hike, Shiba Inu Coin has fallen nearly 50% since that time, and Dogecoin has regained its leadership position despite being kicked out of the top 10 crypto recently after an Avalanche price surge erased. the list of memecoins for the first time since mid-April. Dogecoin was trading at US $ 0.22 at the time of publication, according to CoinMarketCap.
Ethereum rises as Bitcoin crashes
Ethereum’s Ether, the world’s second most popular cryptocurrency, is also approaching the all-time high it reached earlier this year, with ETH prices rising nearly 9% over the past 24 years. hours to trade at US $ 4,742 at time of publication, according to CoinMarketCap. This contrasts with Bitcoin’s fortunes, which have seen significant price swings today, rising and then falling by around 5% in rapid succession amid remarks by US Federal Reserve Chairman Jerome Powell on how the High and persistent inflation is a growing concern that could cause the Fed. to end its bond purchase program earlier than expected.
“At this point, the economy is very strong and inflationary pressures are high. So it’s appropriate, in my opinion, to consider completing the reduction in our asset purchases, which we actually announced at our November meeting, perhaps a few months earlier, ”said Powell, s ‘addressing the Senate Banking Committee on the effects of Covid-19 on the U.S. economy.
While Bitcoin is generally viewed as a hedge against inflation and Powell’s statement could impact the price of Bitcoin, Miller says that during a recent period of price volatility for the largest crypto currency of the world, many other factors affect the crypto markets.
“[There has been] a standoff between the bulls and the bears as Christmas approaches after Thanksgiving, ”Miller said, adding that Ethereum’s growing list of use cases means it is capable of gaining traction, though Bitcoin could slow down.
“[Ethereum] has other factors driving it rather than just an inflationary story, ”Miller said. “There is a lot to be said for crypto in general, in terms of the number of industries where it reflects disruptive potential – Ethereum having perhaps one of the largest around. Bitcoin is still an incredibly strong asset and a great store of long-term value. And I see that persistent inflation only escalates in this story as we move into 2022. ”
Bitcoin was trading at US $ 57,234 at the time of publication.