LUNA could also be a novel funding alternative as a result of it supplies publicity to the stablecoin adoption story and to decentralized apps (dApps) inside the Terra ecosystem. However earlier than you soar in and purchase your self some LUNA, right here’s a breakdown of what it’s and earn rewards by staking it. We’ll additionally inform you the place and purchase LUNA in Canadian {dollars}.
What’s LUNA?
LUNA is the native token of the Terra blockchain, which is a decentralized and open-source protocol well-known for its stablecoins, together with UST—its personal U.S. greenback stablecoin.
Terra, based in 2018 by Daniel Shin and Do Kwon, is among the many largest blockchains by income, and it caters to customers around the globe, with stablecoins pegged to the U.S. greenback, South Korean received, the euro and the British pound, amongst others. Plus, Terra is a great contract platform for blockchain-powered dApps that provide lending, borrowing, insurance coverage and different providers.
Not like the value of bitcoin or ether, the value of a stablecoin stays fixed relative to a selected asset or foreign money—for instance, the U.S. greenback. So, 1 UST is the same as US$1. This stability facilitates frictionless international funds and makes cross-border commerce extra environment friendly, making stablecoins a compelling use case for cryptocurrencies. UST is exclusive amongst stablecoins as a result of it doesn’t depend on dollar-denominated reserves to take care of its peg to the U.S. greenback; slightly, it does this by routinely adjusting the availability of UST primarily based on demand.
LUNA isn’t a stablecoin—it’s the Terra blockchain’s governance token, which permits LUNA stakers to submit and vote on proposals for Terra. LUNA holders are incentivized to take part in sustaining the Terra protocol by staking their tokens (extra on this under) to obtain rewards.
Is LUNA funding?
LUNA could possibly be a gorgeous funding as a result of it combines the real-world utility of worth stability with the benefits of blockchain expertise. In the long run, the value of LUNA will seemingly rise or fall primarily based on the adoption of Terra stablecoins and the Terra protocol. The extra widespread using UST, the upper the value of LUNA could possibly be. Since LUNA is crucial to the Terra blockchain, higher adoption of Terra might create extra demand for LUNA, resulting in greater costs.
As of early April 2022, LUNA is valued at over $110 per coin (all figures in U.S. {dollars}), 17% greater than at the beginning of the 12 months. However that’s minuscule in comparison with its 14,000% achieve in 2021. When you’d invested $1,000 in LUNA on Jan. 1, 2021, you’d now be sitting on over $140,000. The achieve can be even greater in case you’d staked your LUNA to earn rewards. However will the Terra protocol proceed to develop? Two of the 10 largest cryptocurrencies are stablecoins (USD coin and tether USD), and Terra is gaining traction as a blockchain platform for non-fungible tokens (NFTs), decentralized finance (DeFi) and Web3. This bodes nicely for UST and LUNA.
The place to purchase LUNA in Canada
You should purchase LUNA in Canadian {dollars} on a crypto buying and selling platform like NDAX, which is a extremely safe and totally compliant platform with a low transaction payment of 0.2%. It presents a big number of cryptocurrencies, sturdy safety requirements, and a number of deposit and withdrawal choices. It additionally supplies customer support via reside chat, e mail and cellphone, with an anticipated response time of 24 hours for messages obtained off-hours.