Other Coins Showing Resilience
Algo was trading at US$1.81 on Monday afternoon (Sydney time), up 9.4 per cent from 24 hours and mostly higher than they’ve been for the past two weeks. Alogrand tokens did dip as low as $1.42 on Saturday, but only briefly.
Meanwhile Terra was down 13.8 per cent to $62.93, but that’s still up 26 per cent from where it was a week ago. The coin even managed to set a fresh all-time high on Sunday night, of $77.73.
Terra’s stablecoin TerraUSD (UST) dipped as low as US96.5c during Saturday’s crash, but quickly regained its peg to the US dollar.
Wether bear or bull, I think the Terra ecosystem has proven itself
— Guy Polio ? (@GuyPolio) December 4, 2021
Over the weekend Terra also entered the crypto top 10, jumping ahead of Dogecoin, which is now No. 11.
It’s also ahead of Avalanche (No. 12) and Shiba Inu (13).
— Yipman O’Chain ?⚡️?? (@YipmanChain) December 3, 2021
The South Korean-based cross-chain project enables users to mint stablecoins pegged to fiat currencies, such as TerraKRW. The LUNA token is used to absorb price volatility algorithmically. If a Terra stablecoin ever loses its peg to its fiat counterpart, arbitrage opportunities kick in that incentivises LUNA holders to swap their LUNA for the stablecoin in such a way that it rebalances.