Terra (LUNA) could be a big winner as stable coins rise to prominence in the crypto world. This crypto also has a pretty large-cap asset of $16.3 billion. It’s a little larger than Chainlink and the 12th largest crypto. LUNA’s blockchain protocol uses fiat-pegged stablecoins to power price-stable global payment systems.
But wait, here’s a warning on how LUNA can crash: The BIGGEST Debate Raging On in Crypto Twitter is whether or not Luna and UST are a massive Ponzi that may crash one day and take down a huge part of the crypto world with it.
A Cryptopolitan analyst quickly pointed out that Terra’s price has fluctuated quite a bit over the last two weeks. Key factors, however, point to a significant gain in Terra’s stock shortly.
Today’s Terra price is $80.52 USD with a 24-hour trading volume of $1,202,213,913 USD. Terra is down 1.21% in the last 24 hours. The current CoinMarketCap ranking is #9, with a live market cap of $28,929,209,860 USD. It has a circulating supply of 359,291,255 LUNA coins and the maximum supply is not available.
LUNA has been performing well this year, and analysts believe that this trend will continue. Terra (LUNA) is a cryptocurrency that crypto professionals find highly interesting because it has a lot of potential and aspiration as a means of commerce and payment. The coin has risen to the top ten most valuable cryptocurrencies in terms of market capitalization, with a total market value of $30 billion. As a result, most analysts predict that the future of this coin is bright.
So, what’s on our viewfinder? Let’s go through a brief background.
What is Terra (LUNA)?
Terra is a crypto payment solution that has gained a lot of traction since its initiation in January 2018 by Daniel Shin and Do Kwon, the men behind Terraform Labs.
The platform was built to keep in mind the price volatility of blockchain-based assets and perceive them. Terra focuses on price stability and usability and uses smart contract-enabled cryptographic versions of fiat currencies, called stablecoins, in its platform.
Terra has rolled out multiple fiats pegged stablecoins, including TerraUSD (UST), TerraCNY, TerraKRW, TerraEUR, and many more digital currencies. The platform offers easy and quick transactions across borders without any hassle and is used by retailers worldwide.
The native token of the network, LUNA, is an important element in the Terra Ecosystem and is responsible for the platform’s governance. The LUNA token is responsible for operating the collateralizing mechanisms which keep the stablecoins in check and avoid massive fluctuation.
LUNA uses the Proof-of-Stake consensus and has an elastic supply depending on the platform’s need for stablecoins in circulation. Terra has its wallet, called the Terra Station, that can give direct access to stablecoins. One can access the DApps built on the Terra blockchain by using the wallet. Furthermore, the Terra Station can operate on a phone as well as a computer without failure.
Terra Overview
Terra Overview
| Coin | Symbol | Price | Marketcap | Change | Last 24h | Supply | Volume (24h) |
|---|
What is Terra (LUNA)?
Terra is a crypto payment solution that has gained a lot of traction since its initiation in January 2018 by Daniel Shin and Do Kwon, the men behind Terraform Labs.
The platform was built to keep in mind the price volatility of blockchain-based assets and perceive them. Terra focuses on price stability and usability and uses smart contract-enabled cryptographic versions of fiat currencies, called stablecoins, in its platform.
Terra has already rolled out multiple fiats pegged stablecoins, including TerraUSD (UST), TerraCNY, TerraKRW, TerraEUR, and many more digital currencies. The platform offers easy and quick transactions across borders without any hassle and is used by retailers worldwide.
The native token of the network, LUNA, is an important element in the Terra Ecosystem and is responsible for the platform’s governance. The LUNA token is responsible for operating the collateralizing mechanisms which keep the stablecoins in check and avoid massive fluctuation.
LUNA uses the Proof-of-Stake consensus and has an elastic supply depending on the platform’s need for stablecoins in circulation. Terra has its wallet, called the Terra Station, that can give direct access to stablecoins. One can access the DApps built on the Terra blockchain by using the wallet. Furthermore, the Terra Station can operate on a phone and a computer without failure.
Terra Price History
The LUNA coin has performed incredibly well in the year 2021. While the all-time high LUNA price rests at 54.77 USD as of Nov 27, the token started the year at $0.6. The token is ranked 14 on the market with an average trading price of $43 after the recent market crash.
The LUNA price crossed $1 in January and later reached a peak of $6.4 in February. As the investors got the ‘buy Terra’ signal, the prices ran higher for the token. By March-end, the token rallied to $21 and made a new all-time high.
However, this ATH was followed by a bearish movement, due to which the prices of the token dropped as low as 4.1 USD during May while other altcoins were nearing their peak.
Terra Network price current price and bullish trend byCoinMarketCap
As seen in the chart above, the token rallied to a new ATH towards the end of July. By September-mid, the token witnessed a new all-time high above $30. This bullish momentum continued as the token rose by 23% in September and 10% in October.
Terra Technical Analysis
Over the previous couple of weeks, LUNA has witnessed significant improvements. However, LUNA has been trading negatively for a few days.
As seen on the chart, the consolidation phase might very well conclude in a bull-flag formation, which is a traditional bullish continuation pattern.
Waiting for a fresh higher high would be the safest strategy to trade this pattern. The current all-time high, about $104, would be the target. We can yet dip more, waiting for the price to break out and validate the positive trend.
Response to James: The three-digit Luna prices seem attainable, but the model and assumptions do not look right to me:
1) It implicitly assumes the UST market cap increases by burning Luna. That’s not true. UST market cap expansion comes mainly from the appreciation of Luna, and secondly from minting new Luna. How to test it: You can easily validate it by plotting the UST market cap against Luna in circulation and the Luna price.
2) It assumes a money printing mechanism – Bitcoin and Luna prices can spiral up by buying into these two assets pool itself. But the whole point of Bitcoin is to hedge against money printing. I think we need to be skeptical about a model that spirals itself up. How to test it: replace the Bitcoin price with an upward trend with stochastic fluctuations.
Check if the terminal value still holds and whether LUNA prices during high BTC movements are sensible. I think the projection doesn’t work well in the period to period movement, nor would it generate consistent terminal values. And conceptually, Bitcoin backing should reduce luna minting and burn, stabilizing the Luna price. Price will still likely appreciate due to adoption, but volatile movement (such as 1000x) is probably contradictory to this strategy.
3) It assumes a fractional reserve stablecoin will overthrow established fully backed stablecoins. But I think fully reserved stablecoins will still dominate. I think the $80k model result was driven mainly by the issues above.
A side note:
Never heard of it before today (probably says it all? lol), but the stable coins for the $WAVES eco just depegged. Thoughts? A lot of haters wanna see the same fate for UST.
A dear friend’s advice: If you have crypto, don’t flaunt it or keep it in your wallet — spend it!
The beginning of the end: Terra (LFG) buys over 2500 Bitcoin worth $100 MILLION? Read more here.
Recap
Everything needed is found on the charts, plan your trades, figure out where to enter the markets, place your stop-loss, and take profit orders, with advanced and free technical analysis/signals. The charts have been explicitly developed for traders to study technical analysis and offer a large selection of free indicators, and price feeds. So it baffles those on the fringes to see most traders lose.
Here’s why: nothing is one hundred percent predictable from the start. What looks like a sweet thing can suddenly turn sour as we’ve found out. Cryptos are good to go when you have the mettle to withstand volatility and can opt to stake until the sky is clear to trade. High risk and high reward investments abound, but rarely on the level of top-selling altcoins—unregulated virtual currencies that are turning into one of the most volatile investment instruments available today.
FAQs on Terra (LUNA)
Why is Terra’s price rising?
The credit goes to the faith investors have reposed in the asset. At the same time, it is a great reason that LUNA is listed on the major exchanges to show a great performance. This triggers investor response and offers a great deal of motivational sentiment in the market.
Source: https://www.cryptopolitan.com/terra-price-prediction/