Terra Altcoin Behavior

    Question 143: Select a Terra “altcoin” (i.e. not LUNA/ANC/MIR) and assess their performance over the past 90 days, using a metric of your choice (examples: price, number of transactions, volatility.) What do you think are the prospects for your chosen altcoin?

    Terra SDT Performance

    Terra SDT claims to be a price-stable cryptocurrency aimed at mass adoption. Terra claims to be a protocol of money that ensures price-stability by algorithmically expanding and contracting supply. Terra claims to use seigniorage created by its minting operations as transaction stimulus, thereby facilitating adoption. It is currently listed on Bittrue exchange with the pair SDT/USDT.

    Price and volatility

    A chart for the price and volatility for the last 90 days can be found below. The volatility is calculated as the diference in percantage to the average value in 90 days, calculated in a separate query. It usually is between -5% and 5%, with spikes well over 10%.

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    Conclusion

    As a Stablecoin, SDT doesn't perform as well as other stablecoins in other ecosystems like MIM or UST, or the bigger marketcap ones, USDC and USDT. To achieve the goals the project states, the algorhythm for contracting and expanding supply needs some improvement in my opinion.

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