Stablecoins have gained popularity in the crypto space as adoption grows. Terra’s LUNA has remained one of the most profitable cryptos in the recent past, hitting an all-time high of about $120 in April. The rise is partly attributable to external factors and the Terra network’s development. Terra’s UST is the third-largest stablecoin, thanks to the build-up of reserves in BTC and AVAX by the Luna Foundation Guard.
Look no further if you are looking for this coin price projection for 2022. We will look at recent pricing to see what to expect from the future price changes.
What is Terra?
It is a decentralized, open-source, public blockchain for algorithmic stablecoins. It operates as a two token economy featuring the Terra stablecoins and LUNA. The digital assets are pegged to the fiat currency for global payments.
- LUNA is a staking token native to Terra that checks the price volatility of stablecoins.
- Terra stablecoins are pegged to the fiat currencies and minted by burning Luna.
The Terra currencies pegs include USD, EUR, JPY, CNY, and KRW.
Terra architecture enables the creation of multiple fiat-supported currencies through LUNA staking tokens. Terra protocol generated a billion SDT stablecoin at the project launch. The SDT reserve is created to support Terra’s stability model. Terra mechanism enables the swapping of stablecoins to LUNA. Swap fees increase notably when the stablecoin demand changes in a given direction.
Terra blockchain functions as a proof-of-stake consensus model based on Cosmos SDK. The blockchain was introduced in 2018 by founders Do Kwon and Daniel Shin. The project’s mainnet launched in 2019, aiming to increase the adoption of blockchain technology. Terra uses an on-chain governance technology in its structure, a model allowing the holders to contribute their opinion on blockchain parameter updates.
Terra: should you invest in LUNA today?
LUNA/USD is an ideal investment opportunity in the long term but remains bearish in the short term. The token has retraced to ascending support, which it has bounced severally. A break above the $100 resistance level could welcome further upward momentum. However, the Relative Strength Index is currently bearish at 41.57 but has not crossed the oversold zone. The moving average convergence divergence further shows a downward momentum with the histogram remaining below the baseline.
Will Terra (LUNA) reach 200 USD in 2022?
Our technical and fundamental analysis points to a bullish direction for the LUNA token with the growing need for stablecoins in the cryptocurrency space. Historical price also shows that LUNA has made considerable gains for its users. While a perfect price prediction is impossible, further research on the LUNA token is recommended.
- It is projected to rise to as high as $166 by 2022 and trade at an average price of $85. The minimum token surge can be about $140.
- In 2023, it is projected to rise to $188 at a minimum but still could go as high as $203. On average, the crypto could trade at $150 throughout the year.
- Our in-depth analysis puts the token at $240 in 2024 at a minimum, with the price poised to go as high as $270 in the period. The average trading price in the period will be $175.
- In 2025 it is set to rise to as high as $320, with the minimum projection being $298. On average, the token is expected to trade for $190.
LUNA past price analysis
CoinMarketCap currently ranks LUNA at the eight-most valuable crypto with a market capitalization of $29,239,201,947.32. There are currently 245,441,227.14 circulating LUNA tokens from a total supply of 728,502,058. The initial supply was 1 billion with 10% allocation to Terra Labs, 20% for the contributor pool and employees, 20% for Terra alliance, 20% for Stability Reserves, 4% for Genesis liquidity, and 26% for the investors.
LUNA token is currently trading at $83.83, with a 2.9% drop in the past day and a 10.18% decrease in the past week. In the past month, LUNA has dropped 21.53% from $108. The past three months have seen a surge of 66.32% in the token from a low of 50.3, while in the past year, the token has turned in 407%. LUNA remains one of the top-performing cryptos, having jumped to an all-time trading price of $116.11 in April 2022. The tokens are currently trading at a retracement of 27.65% from the ATH.
LUNA’s staking process bonds the token to a validator in return for stakers rewards paid to the users. The Terra platform enables the top 130 validators to participate in the consensus. The validators are ranked based on the number of staked LUNA tokens. The validators having the biggest stake from the delegators often get the opportunity to propose new blocks and earn better rewards. The staked LUNA remains in possession of the delegators and not the validators.
Want to buy LUNA?
LUNA is available on major exchanges, including Binance, Kucoin, Huobi Global, and Gate.io. The token is listed against USDT, BUSD, BTC, and several altcoins. Want to buy Luna Coin? Binance offers multiple options, including Bank deposits, credit and debit cards, peer-to-peer trading, and third-party payments. To complete the purchase, follow these steps:
Register an account on Binance for free.
Fund your account with any of the options mentioned above. The platform supports Visa and MasterCard under the Bank deposits. P2P trading involves buying crypto directly from other users.
Click the ‘markets’ tab and choose ‘spot markets.’
Select trading pairs from USDT, BNB, BTC, ALTS, or fiat and select LUNA in the search engine.
Choose between limit, market, or stop-limit options under the ‘spot market’.
Exchange USDT or any other token for LUNA.