Pantera Capital CEO Dan Morehead has said Terra ($LUNA) is a \u201cpromising\u201d cryptocurrency project with \u201cplenty of room to grow,\u201d even after its price exploded 13,700% year-to-date and its market cap surpassed $31 billion.<\/p>\n
During an interview on CNBC\u2019s \u201cCrypto Night in America,\u201d Morehead noted Terra is growing at a \u201cvery, very rapid rate\u201d and noted Pantera thinks \u201cit\u2019s one of the most promising coins for the upcoming year\u201d as \u201cso many people are just starting to discover it and just starting to trade it.\u201d<\/p>\n
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 \u201cused in the issuance of stablecoins (TerraSDRs), as a price stability mechanism, as well as for staking and network governance.\u201d<\/p>\n
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\u2019 stability. LUNA\u2019s price exploded this year along with the supply of the network\u2019s UST stablecoin.<\/p>\n
During the interview, Morehead noted that Terra is \u201cstarting to broaden out from stablecoins.\u201d He said:<\/p>\n
[Terra] is beginning to gain traction in the South Korean gaming market and that\u2019s one of the leading markets for gaming in the world and so it\u2019s starting to broaden out from stablecoins to do much more interesting things.<\/p>\n
Terra, as CryptoGlobe reported, saw the total value locked in its decentralized finance ecosystem surpass the $20 billion mark earlier this month as the price of LUNA kept on making new highs.<\/p>\n
During the interview, Morehead also said Polkadot ($DOT) and a decentralized finance risk management platform, Risk Harbor, will be hot projects in the coming year based on various factors.<\/p>\n