Because cryptocurrencies come with a significant level of risk, it goes without saying that you should do your research before investing.
While the crypto market has been beset by global economic instability and geopolitical tensions in recent weeks, one altcoin “terra Luna”, in particular, appears to be in great shape.
More to know about Terra Luna
Terra (LUNA), the ninth-largest cryptocurrency, witnessed its price soar from just below US$50 on February 22 to US$81.25 today, a 42.5 percent increase in just six days. But why is this altcoin suddenly gaining popularity? Let’s have a look at it. Before the current expansion, LUNA, like the rest of the crypto market, had a rocky start to the year.
What actually happened to cause such a huge rise in Terra Luna?
Last week, though, Terraform Labs’ founder, Do Kwon, presented a proposal for a considerable sports sponsorship agreement with an unnamed team.
This agreement will allow LUNA holders to vote for one of the four major sports leagues in the United States: the NBA, NFL, MLB, and NHL. In addition, a five-year sponsorship deal worth $38.5 million will be awarded to the winning club. This is the first time a decentralized autonomous organization (DAO) would vote on whether or not to participate in a sports sponsorship agreement.
Let’s take a closer look at the specifics of this transaction. First, while it is uncertain which league would win the multimillion-dollar deal, considering the NBA’s previous agreements with cryptocurrency companies, it is commonly assumed that the NBA will likely be the recipient.
The Staple Center, the team’s home stadium, was renamed The Crypto.com Arena in November of last year after Crypto.com made a massive US$700 million contract to gain naming rights to the stadium for the next 20 years.
Terra’s network has a lot to offer outside of this recent agreement. Terra is a stablecoin network that uses its LUNA token to keep its UST token (set at $1.00) stable.
Terra thinks that this latest sponsorship contract will help bring decentralized money into the mainstream by expanding the network. The current agreement is a much-needed boost for cryptocurrency, which has been hurting due to inflation and the Ukraine conflict. It’s unclear how long the recent price increase in LUNA will persist. On the other hand, Terra appears to be devoted to being a viable blockchain in the long run.
Thats all for what is to be informed you all about Terra Luna, For more info you may check out our few articles posted recently. here’s a list:
- Terra Luna Price Gained 100% In 5 Days Amid A Market Crash! Terra Luna TA & FA Analysis 2022
- Loop Finance Amazing Review- The First MultiChain DEX On The Terra (LUNA) Network (2022)
- Top 3 DEX On Terra (LUNA) Network That You Can Use Right Now!
- Terra ( LUNA) : A Beginner’s Guide
I hope you liked this simple and short article on Terra luna, Do comment with your point of view below in the comment section and i would love to react to it! See you in a bit at cryptocurrencysimple.com.
Frequently Asked Questions:
- What is Terra Luna?
LUNA is one of two tokens produced by Terra, a blockchain technology that is building a worldwide payments system using the dollar-pegged stablecoin UST. LUNA has been one of the top-performing cryptocurrencies over the last two years, rising approximately 76,130 percent from its March 18, 2020 low of $0.12.
2) Is Terra Luna a good investment?
Investors have been positive on the cryptocurrency, with many viewing this reserve as a means of mitigating the platform’s volatility. Since then, LUNA has risen to seventh place in terms of market capitalization, surpassing Solana (SOL) and Cardano (ADA)
3) How high can Terra Luna go?
According to Price Prediction’s LUNA/USD estimate (as of 21 February 2022), it might reach $2,521.28 in 2031.
