Cryptocurrency Solana and Terra price increase by 40 percent in 48 hours

• The DeFi-based cryptocurrencies SOL and LUNA have risen 40% to an all-time high in the past two days.
• The altcoins are experiencing renewed interest alongside Bitcoin and Ethereum.
• Both projects are generously funded by A-list investors such as Andreessen Horowitz and Galaxy Digital.
• Like Cardano and Polkadot, Solana intends to challenge Ethereum’s dominance in building and deploying decentralized applications.
• Terra is a platform with a variety of stable coins that are tied to different fiat currencies.

Despite the security concerns associated with it, the market is extremely optimistic about Decentralized Finance (DeFi) tokens and has driven the value of the Solana and Terra tokens to an all-time high in the past two days.

Solana ($ SOL) is up 40%, valuing the token at over $ 70. It managed to break its mid-May peak and has a market cap of more than $ 20 billion.

Meanwhile, Terra’s token called Luna ($ LUNA) has also risen nearly 40% and costs just over $ 26. Both DeFi projects have seen trade volume grow by a whopping 50%. Despite a massive hack on Poly Network that resulted in the theft of more than $ 600 million, investors are not afraid of DeFi’s future at the macro level.
DeFi-related fraud nearly tripled in the first half of 2021 compared to full year 2020CipherTrace

DeFi-related attacks have almost tripled since last year, and this year – excluding the Poly Network hack – their value – excluding the Poly Network hack – accounted for three-quarters of the major hacks of 2021, according to crypto-intelligence firm CipherTrace.
DeFi hacks account for three quarters of the biggest crypto security breaches this year so far
CipherTrace

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DeFi projects aim to use blockchain – the technology underlying most cryptocurrencies – to replicate traditional financial services like lending and trading. However, it has become a prime target for attack, and according to CipherTrace, hackers managed to steal $ 361 million in the first seven months of 2021 alone.

In contrast, the Poly Network hack is almost twice as big.

SAINTS OF THE CRYPTO CURRENCY
Business Insider

The entire crypto market has recovered from its two-month bearish cycle, and dominant currencies like Bitcoin, Ethereum, and Litecoin have also found greater investor confidence.

Solana wants to take on Ethereum in his home country

Like Cardano and Polkadot, Solana intends to challenge Ethereum’s dominance in building and deploying decentralized applications. It was founded in 2017 amid the Initial Coin Offering (ICO) boom and emerged as a potential contender.

The blockchain platform claims that it can process more than 50,000 transactions per second, which rivals Visa’s offering of 65,000 transactional messages per second (TPS). The number of transactions on the network exceeded 100 million last month and consistently reached 120 million transactions in August.

What makes Solana unique is its consensus mechanism – based on the proof-of-history concept. Developed by Anatoly Yakovenko, Solana assigns timestamps to every transaction so that nodes can keep track of them. This will reduce the time it takes to validate blocks on the network. This feature is also available in Ethereum, but Solana is far more efficient and allows for faster transactions. This is possible because validators process transactions and earn rewards.

The proof-of-history protocol speeds up the network and integrates well with Solana’s common proof-of-stake protocol, so that token holders can validate transactions themselves. The project is supported by Solana Labs, which was funded by the experienced investors Andreessen Horowitz and Polychain Capital from Silicon Valley.

Terra enables the integration of fiat currencies

In contrast to Solana, Terra is a platform with a large number of stable coins that are tied to different fiat currencies. For example, UST is one of Terra’s stable coins and is linked to the USD. Terra is a synthetic assets platform that enables the tracking, issuance and trading of real assets such as stocks via Mirrored Assets (mAssets). They are tied to real assets and only reflect their market price.

LUNA serves as a governance token and is used as an algorithmic balancing system that helps the stablecoins maintain their ties. For example, if TerraUSD is trading above $ 1, users can send $ 1 LUNA to the system and receive 1 UST in return

It aims to become the first widely adopted cryptocurrency by driving adoption through a formidable e-commerce alliance that includes Asia-Pacific giants like TMON, Baemin, Carousell, Qoo10 and Tiki.

Terra is now managed by the South Korean company Terraform Labs, which was founded in 2018 by Daniel Shin and Kwon.

Its main criticism is that it is less decentralized than other blockchain platforms like Ethereum, which is powered by thousands of interconnected compute nodes around the world. Terra has the support of several large blockchain companies, including leading venture capitalist Galaxy Digital.

DeFi is touted as the next frontier for blockchain and cryptocurrencies. And with newer concepts like NFTs booming, investors are confident that cutting-edge technology has the potential to create value.

SEE ALSO:
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source https://www.bisayanews.com/2021/08/17/cryptocurrency-solana-and-terra-price-increase-by-40-percent-in-48-hours/