As the likelihood of markets going into the second crypto-ace-age continues to grow generating an income on stablecoins might be on the top of our 2022 agendas.
SVET Author — Konstantin — writes in his Terra Review and Rating:
Quote:
Terra Review and SVET Rating
SVET Tokenomic (Sustainability — Value — Engagement — Transaction)
Sustainability: In the Terra economy, there are two main types of tokens that are used in the project — the UST stablecoin and the LUNA utility token. The first token, as the name implies, is a stable cryptocurrency pegged to the US dollar in a ratio of 1 to 1. Let’s delve into the statistics. According to the CoinMarketCap portal, as of February 13, 22, UST’s market capitalization is $11.46 billion, which is also an indicator of capitalization at full issue, and the daily trading volume was $220 million. Moreover, the coin takes 17th place in the rating of the platform [2]. The second token, LUNA, is used primarily for algorithmic maintenance of the UST rate and has a market capitalization of $20 billion and $42 billion at full issue, respectively. The daily trading volume as of February 13 is $888 million. Also, if you analyze the entire chart since the start of trading, you can find out that the maximum price of the token was $99.7, against the backdrop of events about integration with THORChain, a protocol that creates a bridge between blockchains for a quick exchange of assets. The minimum price was observed at the stage of launching the cryptocurrency and was equal to $25. At the time of writing, LUNA is trading at $51 per token and is ranked 9th in the CoinMarketCap ranking [3,4]. The Terra platform is currently actively developing and is looking for new ways to cooperate with other promising and well-known projects. As for native cryptocurrencies, we can only say that they have a fairly large amount of capitalization compared to other cryptocurrencies, and they also show significant growth potential, given the historical maximum price and the rating assigned by the most popular service providing information on cryptocurrencies. In terms of large investments in Terra, it is important to say about the attraction of venture capital funding in the amount of $32 million from the divisions of the Binance, Huobi, Upbit and OKEx crypto exchanges in 2018. And also, in 2021, the project received an additional $150 million from investment funds BlockTower Capital and Galaxy Digital [5]. Sustainability rating is b+
Value: The most likely outcome in the context of the time period under consideration is that Terra, as a platform, will continue to develop, and at the same time, the LUNA token price will also rise. There are several reasons for this: Terra is trying to actively develop its network by integrating with other projects (THORChain) and listing its cryptocurrency on various platforms (BitForex, Kraken, WhiteBIT, Binance). The ecosystem also has two flagship DeFi projects, Aunchor (a crypto lending platform with a 20% annual return) and Mirror (a platform for launching synthetic digital assets pegged to securities or other cryptocurrencies). Moreover, at the moment, dozens of Terra-based projects are under development (DeFi applications, payment services, wallets, etc.). We also take into account large-scale investments from large and well-known investment funds and the Value rating will be b+.
Engagement: Tera has more than 2.6 million registered users, of which 70,000 are active per month. On average, from 3 to 5 thousand new users are registered on the platform per day [6]. The peak of 9.9 thousand registrations occurred on December 22, 2021 against the backdrop of news about the integration with THORChain. Based on the data obtained, further stable growth in the number of users can be expected.
Now consider the exchanges where Terra tokens are traded, since various exchange indicators also directly affect the popularity of tokens among traders. In our case, the LUNA token is placed on such global cryptocurrency exchanges as:
• Binance is the largest exchange in the world in terms of trading volume of digital assets;
• Kraken is an American cryptocurrency exchange service with a total trading volume of more than 13% of the world turnover;
• Huobi is one of Terra’s investors and a major crypto exchange with a daily trading volume of around $4 billion.
Thus, we will set the Engagement rating at the level a
Transaction: According to open source information, it is clear that Terra is committed to building a global and efficient decentralized payment system in order to provide users with fast and cheap transactions, including cross-border payments. Since Terra is a decentralized blockchain protocol for algorithmically stable coins with a Proof-of-Stake (PoS) consensus algorithm, it means that here, as elsewhere, there is a transaction fee that is charged as a gas fee, in our case, the role gas is performed by the LUNA token. However, the minimum gas price is set by each individual validator, so we cannot provide any specific figures for the transaction cost. However, the commission for transactions with stablecoins varies from 0.1% to 1% of the transaction price [7]. In addition, the average amount of daily volume transactions is $90 million, which means the Transaction rating will be a
Rating: b+ / b+ / a / a
References:
1. Terra: Main Page https://www.terra.money/
2. CoinMarketCap: UST https://coinmarketcap.com/currencies/terrausd/
3. CoinMarketCap: LUNA https://coinmarketcap.com/currencies/terra-luna/
4. Token Terminal: Terra (LUNA) https://clck.ru/b2fRD
5. Media.sigen.pro: Overview of Terra Blockchain and LUNA Cryptocurrency
https://media.sigen.pro/reviews/8652
6. Terra Community Console: Operational Data. Usage https://clck.ru/b2nPD
7. Blockchain24.com https://clck.ru/b2fTb
8. Terra Community Console: Financial Data. Swaps https://clck.ru/b2nPD
9. hub.forklog.com https://clck.ru/b2fTP
10. ruscoins.info https://clck.ru/bFBSj
11. Telegram: Terra Network https://t.me/TerraLunaChat
12. Twitter: Terra (UST) Powered by LUNA https://twitter.com/terra_money
13. GitHub: Terra https://github.com/terra-money/
14. Reddit: Terra powered by Luna https://www.reddit.com/r/terraluna/
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