Terra (LUNA) was the breakout star of 2021. The Terra price jumped by about 16,000% in 2021, bringing its total market capitalization to more than $33 billion, making it the 9th biggest coin in the world. That was a remarkable performance for a coin that was not well-known when the year started.
What is Terra?
Terra is a blockchain project that was developed by Terraform, a South Korean company. The network enables developers to build decentralized applications like those in the DeFi industry.
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According to DeFi Llama, there are now 14 DeFi products in the network that have a total value locked of more than $19.3 billion. These products include Lido, Anchor, and Astroport that have a TVL of more than $1 billion each.
Terra is also best-known for the stablecoins that exist in its network. A stablecoin is a cryptocurrency that is backed by real assets like fiat currencies. Its leading stablecoin is known as TerraUST and is the fourth-biggest stablecoin in the world after Tether, USD Coin, and Binance USD.
Terra is also known because of the investigation that the Securities and Exchange Commission (SEC) is carrying out. A few months ago, the SEC sued Terraform Labs and its founder. It delivered the subpoenas during the Mainnet Conference.
In a statement in December, Terraform’s lawyers argued that the SEC lacked jurisdiction to enforce its subpoenas since Terraform is not incorporated in the US. They said:
“TFL is incorporated under the laws of Singapore and maintains corporate offices in Singapore and South Korea. Mr. Kwon is a citizen of South Korea and resident of Singapore. By statute, the SEC cannot serve administrative subpoenas outside the United States.”
This lawsuit will be watched closely in 2022 and its progress will likely have an impact on the Terra LUNA price.
Terra price prediction
The daily chart shows that the LUNA price has been in a bullish trend in the past few months. Along the way, the price has formed an ascending channel that is shown in red. It has also jumped above the 25-day and 50-day moving averages. It is also above the key support level at $22.89, which was the highest level in March.
Therefore, there is a likelihood that the Terra price will keep rising in the near term. However, a bearish breakout cannot be ruled out as investors watch the SEC lawsuit and also take profit.
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Source: https://invezz.com/news/2022/01/02/terra-price-prediction-is-luna-a-buy-after-the-16000-gain/