Is Terra’s (LUNA) Rally a Sign that DeFi Will Succeed in 2022 as Seesaw Protocol (SSW) Presale Begins

It is widely acknowledged that the cryptocurrency market can be volatile. After historic gains in 2021, the market has dipped considerably at the beginning of 2022. The major players of Bitcoin (BTC) and Ethereum (ETH) are down 3.6% and 6.5% over the last 7 days respectively. This latest dip has been sustained and has even caused some crypto analysts to label it the beginning of the bear market.

For most, these predictions are premature. In fact, some cryptocurrencies have rallied. As of the 19th of January, Terra (LUNA) is up almost 5% in spite of a more general market downturn. It has been anticipated that a huge part of the future of crypto will be DeFi (decentralized finance) protocols like Terra, and the newly released Seesaw Protocol (SSW).

Terra (LUNA) and DeFi

Terra is a protocol that uses stablecoins such as USDT to power payment systems. Its creators say that Terra combines the current worldwide adoption of physical fiat currency with the speed, flexibility, and decentralized nature of cryptocurrency. LUNA is one of several cryptocurrencies that has proven to be resistant to a lot of market forces and some market-wide downturns.

LUNA is ranked 9th in terms of total market cap and has around $18 billion total value locked. This makes Terra one of the biggest DeFi protocols, behind only Ethereum. Many applications are being built on top of the Terra blockchain, some of which concern the Metaverse, another area tipped to see sustained growth in 2022.

Some other leading DeFi protocols have not been immune to the recent dips. Avalanche (AVAX) and Chainlink (LINK) are other top 5 DeFi projects and have seen a substantial dip in the last 7 days. AVAX is down 11% and LINK has fallen 16%. LUNA appears to currently be uniquely placed amongst established DeFi assets to disregard the patterns of the rest of the market.

The proof of stake model used by Terra is much less energy-intensive and therefore has less of an impact on the environment. This is clearly a positive, but the protocol does not come without risk. If the stablecoins that LUNA are pegged to fail to hold, the price of LUNA could become very volatile and crash. Every cryptocurrency comes with its risks, but according to Matt Hougan, chief investment officer at Bitwise Asset Management, Terra is “gearing up to be a serious Ethereum competitor.”

Seesaw Protocol (SSW)

Seesaw Protocol is attempting to incentivize long-term holding by attaching fees to each purchase and sale of SSW. The 3% fee on top of every sale is split into thirds, with some being distributed amongst existing holders. This means that as the SSW community grows, so do the wallets of its holders. The 5% fee included in every sale of SSW helps to improve the liquidity of the token, and by extension its stability.

Seesaw Protocol is hoping to make a splash in the ever-expanding DeFi market. It is beginning its presale in the coming days. It will last for 8 weeks and be split into 3 stages. Presales are the earliest chance for people to get in on a project, and the benefits of this are well established. Early investors in Shiba Inu (SHIB), Polkadot (DOT), and Avalanche (AVAX) reaped the benefits.

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