The recent crypto market dip following the Silicon Valley Bank’s (SVB) collapse has weighed heavily on Luna Classic (LUNC), the cryptocurrency that powers the original but now largely defunct Terra blockchain ecosystem.
LUNC was at the center of the collapse of the Terra ecosystem in May 2022. The coin has also been severely affected by the collapse of the crypto exchange FTX in November last year.
Its market capitalization has dropped from $1.5 billion to $1.0.4 billion since then. Transactions on the Terra 2.0 blockchain are validated through the proof-of-stake (PoS) consensus mechanism.
The leading cryptocurrency, Ethereum (ETH), has also transitioned from a proof-of-work to a proof-of-stake mechanism. This has only made the competition among PoS blockchains tougher.Read more on ambcrypto.com