Terra has surged in recent sessions as the project climbed 60% in price on Monday, moving the little-known project into the top 30.
Is Terra (LUNA) the new kid on the block? The project is fairly new, considering the majority of the top 30 coins based on market capitalization.
While Terra has been trading for nearly two years, the project has only recently gained the attention of cryptocurrency traders. One of the key reasons for the project’s rise to prominence may be related to its seigniorage features.
Whatever the fundamentals, traders have caught on and the project has climbed into the top 30. LUNA is the biggest gainer on the day by far, according to CoinGecko.
Fastest Growing Cosmos Project
Terra currently operates as an eco-system on the Cosmos blockchain. This makes it the second-biggest project behind the native Cosmos (ATOM) token. The Cosmos blockchain currently has three projects in the top 100.
Excluding ATOM, Terra (LUNA), Crypto.com (CRO), and THORChain (RUNE) make up those spots. The Cosmos blockchain features no less than ten additional projects on its blockchain.
Terra is looking at creating a financial ecosystem that will rival traditional finance. The project currently utilizes the e-wallet payment wallet, Chai. It also integrates with MemePay, a Mongolian e-wallet utilized by 1.5% of the online population.
Both payment applications make up over two million users with over $1 billion in transactional volume per year. It now boasts the third-highest fees generated in the market after Bitcoin and Ethereum. The project currently generates $16 million in fees annually.
Stablecoins Featuring Cross-Chain Abilities
It also operates a Korean stable coin called TerraKRW, as well as TerraUSD. The recently launched TerraUSD looks to capitalize on the project’s current success to bring liquidity and Decentralized Finance (DeFi) to millions of users.
Terra continues to push the boundaries of adoption. The project will also be launching a bridging protocol called Dropship. Dropship will allow Terra stablecoins to migrate from the mainnet to other blockchains. This allows user adoption to thrive in a cross-blockchain ecosystem.
Terra New All-Time High
While Terra has a lot to be excited about, it’s evident its success and future plans are being priced in. The project has seen a cumulative gain of 213% over the last seven days.
The project now holds a market capitalization of $2.16 billion, surpassing prominent projects such as Neo, Sushi, Compound, and Solana.