The Terra (LUNA/USD) price has made a strong comeback in the past few days as demand for the coin jumps. LUNA is trading at $80, which is about 28% above the lowest level this month. The rebound brings the total market capitalization of the coin to over $28 billion, making it the 10th biggest cryptocurrency in the world.
Terra makes a comeback
Terra is a blockchain project managed by Terraform Labs, a South Korean company. It is a layer-1 platform that has a platform where developers can build applications in all industries like non-fungible tokens (NFT) and decentralized finance (DeFi).
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Terra is well-known because of the stablecoins it runs. TerraUSD is the fourth biggest stablecoin after Tether, USD Coin, and Binance USD. It has a total market capitalization of over $10 billion, making it the 19th biggest cryptocurrency in the world. TerraUSD is not backed by the US dollar. It is backed by smart contract technologies and the LUNA coin.
Terra works in a different way than other cryptocurrencies, which makes it highly popular in South Korea. For example, if you want to buy a flight ticket, you could use CHAI, a decentralized application built using Terra’s platform.
To do this, you will need to mint your Terra stablecoin. As you do this, you will be burning a required number of LUNA tokens. After you buy the ticket, Terra will generate a transaction fee that is shared among LUNA delegators.
Terra, which was built using the Cosmos SDK, has become a popular platform for DeFi developers. According to DeFi Llama, there are now 17 apps developed on its platform that have a total value locked of over $18 billion. Some of them are Anchor, Lido, Astroport, and Terraswap.
Terra price prediction
The four-hour chart shows that the LUNA price crashed to a low of $62 this year as the cryptocurrency sell-off accelerated. This price was along the 61.8% Fibonacci retracement level. It has now bounced back and is slightly above the 38.2% retracement level. Also, the price has moved slightly above the 25-day and 50-day exponential moving averages (EMA).
Therefore, there is a likelihood that the Terra price will maintain a bullish trend as bulls target the 23.6% retracement level at about $87.92. On the flip side, a drop below the key support at $75 will invalidate this view.
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