Pantera Capital CEO Dan Morehead has said Terra ($LUNA) is a “promising” cryptocurrency project with “plenty of room to grow,” even after its price exploded 13,700% year-to-date and its market cap surpassed $31 billion.
During an interview on CNBC’s “Crypto Night in America,” Morehead noted Terra is growing at a “very, very rapid rate” and noted Pantera thinks “it’s one of the most promising coins for the upcoming year” as “so many people are just starting to discover it and just starting to trade it.”
Terra is an open-source blockchain payment platform that accommodates algorithmic stablecoins, the largest one being TerraUSD (UST). It uses a Proof-of-Stake (PoS) consensus algorithm, and its native token LUNA is “used in the issuance of stablecoins (TerraSDRs), as a price stability mechanism, as well as for staking and network governance.”
New stablecoins can be minted by burning LUNA tokens, and stablecoins can be burned to mint LUNA. The protocol uses an algorithmic market module to maintain stablecoins’ stability. LUNA’s price exploded this year along with the supply of the network’s UST stablecoin.
During the interview, Morehead noted that Terra is “starting to broaden out from stablecoins.” He said:
[Terra] is beginning to gain traction in the South Korean gaming market and that’s one of the leading markets for gaming in the world and so it’s starting to broaden out from stablecoins to do much more interesting things.
Terra, as CryptoGlobe reported, saw the total value locked in its decentralized finance ecosystem surpass the $20 billion mark earlier this month as the price of LUNA kept on making new highs.
During the interview, Morehead also said Polkadot ($DOT) and a decentralized finance risk management platform, Risk Harbor, will be hot projects in the coming year based on various factors.
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.
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