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As a leader in the development of algorithmic stablecoins, Terra (LUNA 11.87%) is a token that has attracted much attention recently. As of 10:45 am Eastern Time, LUNA has soared 4.5% in the past 24 hours, reaching a market value of US$24.8 billion. This week, Terra rose by 53%, making it one of the best performing large-cap tokens on the market.
On the other hand, Meme token Shiba Inu (SHIB 2.43%) fell again today. As of 10:45 a.m. Eastern Time, the token fell 6.8% daily, reducing Shiba Inu's market value to 23.6 billion U.S. dollars, one place lower than Terra in the market value ranking. This decline also wiped out most of the gains from the dog-inspired tokens this week.
Terra Luna is a cryptocurrency, and many catalysts emerged this week to promote this outstanding performance.
On Tuesday, we learned that Terra investors voted for an important proposal that would allow the community to fund a comprehensive reform of the network’s TrackTerra tax and reporting application. This reform will enable LUNA holders to export their transactions to various tax software programs. Given that the US government wants to impose various reporting requirements on the encryption industry, this seems to be positive.
This proposal is one of many proposals made by Terra to improve its status as a powerful global stablecoin ecosystem. Other proposals, such as Proposal 143, an initiative aimed at increasing liquidity and widespread adoption of LUNA in major blockchain networks, are making progress.
Terra is a large and evolving stablecoin ecosystem, and investors seem to like the development direction of the Terra development team. These tax and liquidity updates provide a positive catalyst for investors who are concerned about the increasingly hawkish regulatory environment in the cryptocurrency world.
In addition, there are reports that stablecoin trading volume accounts for about 77% of the cryptocurrency market's 24-hour trading volume, which indicates that this is a market that a considerable market investor is currently paying attention to. Terra's positioning as a key player in the stablecoin space is a catalyst, which seems to indicate that the value of the token relative to other cryptocurrencies may continue to rise, at least in the short term.
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