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The service cryptocurrency of the Terra crypto project increased its value by 8% during yesterday’s trading, despite the decline in most digital assets. LUNA showed the biggest increase in the top 30 rankings since the release of the Bloomberg Intelligence analysis.
The BI Crypto Outlook Report, released by analysts, advises investors to pay attention to algorithmic stablockins in light of things to come.
Now USDT and USDC dollar tokens are popular on the crypto market, which are not available to citizens of countries that are on the list of EU, US and UN sanctions. The companies Tether and Circle issuing these stablecoins have the full ability to block any deposit or change the smart contract code.
According to Bloomberg Intelligence, developers will have to do such a hard fork after the release of the decree of US President Joe Biden and EU regulations. Tether and Circle will not be able to ignore the new laws, otherwise they themselves will find themselves on the list of sanctions and will be cut off from fiat.
Algostables do not need fiat, the peg to the dollar is provided by a decentralized algorithm that guarantees non-interference of developers in the process of token circulation. The most successful such project is UST, which is issued on the Terra blockchain.
The token is ranked 14th in terms of capitalization, despite the attempts of the US SEC to pursue the project. The regulator is not happy with the fact that UST is actively used in the Mirror platform, this protocol of the Terra ecosystem allows you to buy tokenized US shares that can be staked.
Anchor protocol, another reason for the popularity of algostablecoin. The developers of this project guarantee a 20% rate of return on UST staking. Anchor has so far raised TVL investments in excess of
Interest in UST spins the value of LUNA due to the burning algorithm of these coins, against which the dollar token is issued. This property provides resistance to the fall of the official cryptocurrency at the time of active sales of other digital assets.
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