Terra and Token: Let us dig deeper
Terra is a blockchain project built using Cosmos SDK that enables developers to build decentralized applications. It is also widely known for the stablecoins built in its ecosystem.
LUNA is the native coin for the ecosystem. It has a maximum supply limit of 1 billion while those in circulation are about 400 million.
According to CoinGecko, Terra has a total market capitalization of $21 billion and a diluted cap of $54 billion. It is the 11th biggest cryptocurrency in the world. Terra is trading at $54, which is about 50% below the current level and 1,413% above the lowest level in May.
Terra is also used as a platform to build DEFI projects. Data compiled by DeFi Llama shows that there are about 18 DeFi apps that have a total value locked (TVL) of more $14 billion. Some of the biggest apps in the ecosystem are Lido, Anchor, and Astroport among others.
Terra (LUNA) price history and technical analysis
Terra, like all cryptocurrencies, had an excellent year in 2021 as investors cheered the growth of its ecosystem and its stablecoin. For example, demand for Terra USD jumped, bringing its total market cap to over $11 billion, making it the fourth-biggest stablecoin in the world. Investors also cheered the fact that Terra became the second-biggest DeFi platform after Ethereum.
The daily chart shows the strong performance of Terra. It rose to an all-time high of $105.92 and is currently about 50% below its all-time high.
The price has moved slightly below the 25-day and 50-day moving averages. It has also moved below the lower side of the ascending channel shown in red. That is a sign that bears are getting control. At the same time, the money flow index (MFI) is approaching the overbought level.
Therefore, there is a likelihood that the coin will continue falling in the coming months as bears target the key support level at $21.
Terra (LUNA) price prediction for a year
2022 will be characterized by a number of events. The most important one will be the Federal Reserve, which is expected to end its easy-money policies this year. Analysts expect that the bank will deliver a minimum of three rate hikes and then abandon its QE. With the labor market tightening and inflation being red hot, a situation where the Fed delivers more rate hikes cannot be ruled out.
Second, there is the issue of regulations. Many countries are expected to unveil their cryptocurrency regulations later this year. Already, the Russian government has confirmed that it will intensify regulations this year. Others to watch will be in India, European Union and the US. Finally, the price will react to the growth or bust of key areas like DEFI, NFTs, and the metaverse.
An analysis by Long Forecast estimates that LUNA will end the year at $112, which is significantly higher than the current $75. Another one by CoinPricePredict expects that LUNA will be at $279 in December while Gov Capital estimates that it will be above $300.
Terra (LUNA) price prediction for 2025
Terra and other smart contract platforms like Ethereum and Solana have more utility value than Bitcoin. Therefore, as the world slowly transitions to a decentralised universe, there is a likelihood that the prices of their tokens will do well by 2025.
Terra, for its part, has an excellent platform that has a faster throughput and is more friendly to developers. As such, there is a likelihood that its price will be significantly higher than where it is today. For example, the LUNA price has jumped by 800% in the past 12 months. Chances are that its growth will slow by 2025.
As such, if we model that its price will double by 2025, it will be trading at about $110. Meanwhile, LongForecast estimates that the price will end 2025 at $224. Similarly, a user poll by CoinPricePredict estimates that the price will be around $279 by 2025.
Terra (LUNA) in questions and answers
Is Terra coin real?
LUNA is a real coin that helps to secure the Terra ecosystem. It is a popular coin, among the top 15 biggest cryptocurrencies in the world.
Will Terra reach $1,000?
Terra is trading at about $54. This means that it needs to rise by about 1,750% to get to $1,000. Therefore, for 2022, that is highly unlikely. In the long-term, however, there is a likelihood that the price will rise to $1,000. Besides, LUNA has already risen by about 3,000% since 2020.
Should I buy Terra coin?
Terra is a good investment based on its historic performance and the fact that more developers are embracing its ecosystem.
How much will be LUNA be in 2025?
Most estimates note that LUNA will be at a significantly higher price than where it is today. Therefore, a rough estimate is that the coin will be between $100 and $300 by 2025.
Where do I buy LUNA token?
Terra has become a popular cryptocurrency. As a result, it is offered by many centralized and decentralized exchanges like Coinbase and Kraken.
