Terra 2.0 is currently available, according to a Terraform Labs release. In addition, the firm has started an airdrop of additional Luna tokens, which will be processed soon.
In the midst of a long-term bear market, the crypto space has experienced a mini-revival to start the week. The total market cap is now above 1.3 trillion us dollars and Bitcoin is back up over 31k. A number of altcoins have enjoyed strong performances too such as Waves, Cardano, and TrueBit.
As part of the crash, major project terra luna lost nearly all of its value – but as part of the recent revival, the token itself is seeing a new lease of life in the form of Terra 2.0. In this post, we will take a look at the project and its performance.
Just before I take you through it, keep in mind that crypto is a volatile asset class so it’s important to do your own research before investing in any cryptocurrency.
What is Terra 2.0?
Terra’s latest journey uses the proof-of-stake method to support decentralized apps. The top 130 validators, according to the official document, contribute to the validation process. Validators of any blockchain are essentially miners.
Proof-of-stake consensus is believed to consume less energy as compared to the proof-of-work method used by Bitcoin. Terra 2.0 follows Terra, the fall of which was blamed for the decline in the wider crypto market in May 2022.
The native token of the previous Terra network has been renamed LUNA Classic. Terra 2.0 is expected to do away with stablecoins as well. TerraUSD (UST) was the original Terra’s stablecoin.
What is LUNA 2?
LUNA 2 is the token linked to Terra 2.0, with its primary role being the staking process. The Terra ecosystem is referring to LUNA 2 as LUNA. The earlier LUNA is now LUNA Classic. LUNA 2 follows a proposal that was cleared to set up the latest version of Terra 2.0 network.
Besides its usage in staking and validation, LUNA 2 will also act as the governance token of the new blockchain. The maximum supply of LUNA 2 is said to be one billion tokens, of which 205 million tokens are believed to be in circulation right now.
As a transitional gesture, it’s been mooted that the users of the older Terra blockchain might well receive some Luna 2 tokens, with lock-in features. LUNA 2 price LUNA 2 started trading on May 28. The price has since manifested volatility.
CoinMarketCap data indicates that LUNA’s price peaked at over US$19 on the first day and then quickly fell to nearly US$4. On May 31, the price recovered and reached almost US$11. This limited recovery is said to have resulted from LUNA 2’s Binance listing news. As of writing, LUNA was trading at under US$9.
Is Terra 2.0 a Good Investment?
So ultimately Luna 2 might be similar to the previous approach but it’s not a carbon copy – the stablecoin attachment has been done away with. The adoption of Terra 2.0 by developers and how the wider crypto market behaves in the medium-term might shape LUNA 2’s price trajectory.
Many individuals have been hurt by Terra’s demise, and it’s possible that most of them may lose interest in purchasing the coin again.
While prosecutors in South Korea are building a case against Do Kwon, it is too early to say whether he was to blame for the company’s demise. UST was, in my opinion, a fantastic idea that failed.
As a result, the Terra 2.0 is likely to fill in the holes that were in the prior version. We can’t rule out the possibility of a Terra price rebound in the near future due to its tremendous brand recognition.
What are your thoughts on Terra 2.0 and LUNA 2? Should investors avoid it like the plague or is there a genuine opportunity here with a modest entry price? Has Do Kwon actually learned from his errors? Let us know in the comments section.