Terra (LUNA) Sharpe ratio until March 23, 2022
Terra's Sharpe ratio in March 2022 was higher than that of the S&P 500, reaching a value that was considered to be beyond "excellent". This particular ratio gives investors an idea on how their investments perform on the long run, and is calculated by subtracting risk-free rate from the expected return of a particular asset. The higher the Sharpe ratio, the more the extra risk is actually paying off - as returns are above-average. In the case of Ethereum, the ratio was mostly between values of one and two which are considered to be "acceptable or good". A value of zero means the asset in consideration is risk-free, which may be both good - as you are not losing out on money - or bad - as the extra risk taken may not be worth the effort.
