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What's the latest news on Terra crypto in 2023?

Terra project logo on blue image ofcry[tocurrency coins stacked up
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Terra crypto was the most talked about project in the digital currency space due to leading a downtrend that saw billions of dollars wiped off from the overall market capitalization of the blockchain-powered economy.

When Terra was taken to market in January 2018 by Do Kwon and Daniel Shin, it showed a lot of promise and was touted by many blockchain enthusiasts to rival Solana, Cardano, and other smart contracts-backed chains as an Ethereum Killer. 

Much of the loss came from the crash of TerraUSD (UST), one of the most used stablecoins over the past two years, and this led to the delisting of the virtual currency by major cryptocurrency exchanges. 

Over the past year, numerous arrest warrants have been issued for former CEO and founder Do Kwon while millions of customers continue to suffer from the irrecoverable losses incurred from crypto winter. 

The crypto market has been on a rebound in 2023. While coins and tokens under the artificial intelligence (AI), big data, meme-inspired, and Metaverse umbrellas have brought multiple percentage gains to traders and investors, many coins like Terra (LUNA) have not outshone many such crypto assets. 

Let us examine the latest news on the project, which could positively impact the price of LUNA and bring more developers to the once-thriving platform that showed loads of promise. 

Terra crypto announces Alliance partnership

On 20 April, 2023, Terra alerted stakeholders that its community which goes by the name of LUNAtic has merged the "Alliance” Module into Terra mainnet. 

This will open a new range of possibilities for growth and collaboration cross-chain-wise. This announcement bodes well for a project that once commanded approximately $20 billion in total value locked (TVL) from decentralized applications (dApps) such as Terraswap, Astroport (exchanges), Spectrum and Aperture Finance (yield), and Lido (liquid staking), data from tracker DeFiLlama showed. 

But what is Alliance, and how does it work? Alliance is an open-source Cosmos Software Development Kit (SDK) that empowers blockchains to position themselves incentive-wise with users, developers, and adjacent chains to strengthen and expand their respective ecosystems. 

Alliance is positively skewed towards staking (one of the primary ways of getting consistent passive income under the current crypto climate) by serving as an instrument that is steering the monetary policy of the decentralized economy. 

Aside from diversifying and augmenting staking yield, some of Alliance's use cases include attracting users, liquidity, and developers, incentivizing application developers, and deepening liquidity for essential token pairs.

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How do Terra crypto holders benefit from Alliance?

By unlocking various opportunities for collaboration and growth for both Terra and Cosmos ecosystems, holders of Terra crypto can earn staking rewards across several chains. 

A great example can be attributed to the second Cosmos Implementation of Alliance, which went live on OxCarbon.

Due to Alliance's association, “#ampLUNA and $stLUNA LSTs can now be staked as Alliance assets, to earn native staking rewards, on Carbon app chain”, per a retweet by Terra Powered by LUNA. 

Newbies to the crypto-powered economy should know that staking is growing rapidly. 

As of 20:00 UTC on 6 June, 2023, there were more than nine million stakers globally, the global staked value was around $89 billion, and Proof-of-Stake (POS) market cap was about $330 billion, data from the provider for staking and crypto-growth tools Staking Rewards showed. 

Does Terra crypto have a future?

There are two digital currencies related to the Terra project on the market. They are Terra Luna (LUNA), a new cryptocurrency launched after the crash of the original project currently called Terra Classic (LUNC). Despite the positives, both cryptocurrencies have been on a downtrend this year. LUNC has declined by 31% in value after opening the year with a trading price of $0.0001451 and exchanging hands for $0.0001, data from crypto price tracker CoinMarketCap showed.

LUNA has also fallen sharply in the first six months of the year with $0.8132 as its trading price, as of writing, after opening the year on 1 January with a value of $1.2591. LUNC has a market capitalization of roughly $585 million, while LUNA commands a market value of around $230 million.

Despite the negatives, the two cryptocurrencies continue to see a daily trading volume of more than $10 million. With trading volume as the primary measure, both currencies have a future due to consistent liquidity. 

Conclusion: Should you buy Terra crypto?

Yes, LUNA and LUNC are digital assets you should consider adding to your investment portfolios. 

This is because they are trading below £1. As a result, forking out £100 could see you buy millions of either coin. 

That way, should the cryptocurrencies reach an impressive trading price within a short period, you can see double, triple, quadruple, quintuple, or more gains. 

While many articles remain bullish on the state of many digital tokens in the future, there are two sides to every investment. There are profits and losses. 

Therefore, do your due diligence- extensively research coins by weighing the pros against the cons before investing your hard-earned money.

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Author: Raphael Minter

Raphael Minter/ Albert Zuhnden (preferred pen name) is a crypto finance writer, data miner, and fundamental analyst. Raphael has written hundreds of articles about centralized and decentralized financial instruments such as precious metals, commodities, stocks, and cryptocurrencies. He broke into digital finance in 2016 and believes digital assets and blockchain technology is the future of finance.

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