Terra is a blockchain protocol that uses stablecoins backed by fiat currency to support price-stable global payment networks.
According to the white paper, Terra combines the price stability and widespread adoption of fiat currencies with the censorship-resistance of Bitcoin (BTC) and provides quick and low-cost transactions.
The LUNA token and UST are mutually dependent, as the success of the Terra ecosystem is dependent on the adoption of UST as a stablecoin.
LUNA invests in UST and is burned as UST demand rises. However, if UST is deemed unstable, the value of LUNA may fall.
Will Terra Luna recover?
It’s the end of the road for cryptocurrency Terra Luna, whose price has been falling steadily over the last week.
According to CoinMarketCap data, the token is currently trading 99.57 percent lower at $0.01503 at 8:40 p.m. IST.
Terra Luna plummeted during the TerraUSD, the so-called stablecoin, de-pegging fiasco, and has been sinking ever since.