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The year 2022 has not been great for the crypto market in general but there’s one cryptocurrency that has stood out in these turbulent times: Terra. It has emerged as a strong performer delivering solid returns to investors. The increase in demand for stable coins has largely been pushing the price of Terra (LUNA) cryptocurrency. Compared to most of its peers, Terra has been able to successfully outperform the crypto market on multiple parameters. In the past 7 days, the price of Terra (LUNA) cryptocurrency has increased by 3.22% and by 19.18% in the last 24 hours. Moreover, the best part is that all four protocols on the network have grown dramatically in recent weeks.
What Is Terra? 5 Reasons Behind the Rise of Terra (LUNA) Cryptocurrency
- What Is Terra?
- The Possible Growth Drivers for Terra (LUNA) Cryptocurrency
- Terra (LUNA) cryptocurrency Price Prediction for the Future
- Some Market Forecasts
What Is Terra?
Terra is a lesser-known blockchain protocol that uses fiat-pegged stable coins to power its price-stable global payments systems. The said project founded in January 2018 by Daniel Shin and Do Kwon, focuses on price stability and aims towards driving the rapid adoption of blockchain technology. Terra’s native currency, LUNA, also has a lot of contribution to the growth of its innovative platform owing to the immense levels of versatility it possesses.
Today, Terra (LUNA) cryptocurrency is one of the fastest-growing cryptos in the market. It is the second-biggest smart-contract platform after Ethereum and is also the seventh-largest token with a market cap of over $34 billion.
The Possible Growth Drivers for Terra (LUNA) Cryptocurrency
Steep growth in Terra’s valuation has ensured that it is considered as serious competition to Ethereum. Its ecosystem has also gained a lot of investor attention after the recent launch of the Terra-based ETFs. It helps that the fiat-backed protocol, Terra is expected to remain an important part of the global payment system.
A large number of factors have been attributed to Terra’s huge success. Some of them are discussed below.
Increase in the adoption of cryptos
Investing in cryptocurrencies is a rage these days. A lot of people across the world are getting into this volatile yet highly growth-oriented industry. This global surge in crypto adoption has also driven the deployment of Terra blockchain across various Defi, NFT, and Web3 related projects.
The raising of $1 billion Luna Foundation Guard
Recently, $1 billion has been raised by Luna Foundation Guard (LFG) for the purpose of creating a Bitcoin-led reserve for UST stable coin. This action has been attributed as one of the moves that might have ignited investors’ interest in the Terra ecosystem. Its anchor segment especially has grown after LFG injected $450 million into this protocol for supporting the subsidization of its yield which is approximately 20%.
Incentives for Investors
Terra has been offering the investors attractive incentives in order to attract them to its DeFi ecosystem and consequently raise the demand for its stable coins. Despite Ethereum having the largest DeFi protocol, Terra doesn’t lag behind much either because just within a short period of time it has been able to successfully create an ecosystem that has 13 DeFi protocols built on it.
Terra has entered into partnerships with numerous payment platforms in multiple regions including the Asia-Pacific and by February 2019 itself, e-commerce platforms across 10 different countries had become its allies. This support from businesses and platforms advocating for its adoption has largely helped it in its progress.
Innovation and manner of operation
Terra’s innovation push was key to the formation of its entire DeFi juggernaut. This initiated the rate of growth even when the market was down. Investors have also become more hopeful because of this decentralized and algorithmic nature of the stabilization mechanism. On top of that Terra’s burn mechanism has further heightened the pace of growth. The burning of the LUNA tokens from the community pool was done only to create a scarcity of the assets and as a result, boost its price levels in the process.
Terra (LUNA) cryptocurrency Price Prediction for the Future
Terra (LUNA) cryptocurrency has recorded over 57% green days with 23.57% price volatility since the last 30 days so the market is quite positive about it at present.
As per data on March 9, it is expected that the value of Terra will rise by 16.42% and reach $ 114.35 by March 14, 2022. Besides, in general, 22 technical analysis indicators are having bullish signals for Terra while only 3 of them are providing bearish signals. This means around 88% of the market is Bullish on Terra and only 12% is Bearish on it. Moreover, based on today’s classical pivot point (P1) with the value of $83.42, the support levels are $79.94, $74.31, and $70.83 and the resistance levels are at $89.04, $92.53, and $98.15
The daily and weekly simple moving averages (SMA) and exponential moving averages (EMA) are mostly giving ‘BUY’ signals but the hull moving average (HMA) is showing a “SELL”. Again, the Williams percentage range, the Stoch RSI (Stoch RSI), the Commodity Channel Index have been showing Neutral signs.
Some Market Forecasts
- As per Wallet Investor, the average price of Terra (LUNA) cryptocurrency might reach $165.882 by next year and $508.274 within the next five years
- According to Digital Coin the average price of Terra (LUNA) cryptocurrency in 2022 could be $136.83, moving up to $152.74 in 2023, $208.26 in 2025 and $467.26 in 2030.
- According to Price Prediction, the average price of Terra (LUNA) cryptocurrency could reach $130.42 in 2022, $396.81 in 2025 and $2793.52 in 2030. Its ten-year price prediction indicated the coin could reach $4072.21 in 2031.
The uncertainty surrounding the market since Russia and Ukraine’s conflict might have crippled the performances of most market participants but it has worked in Terra’s favor. Moreover, with all the positivity surrounding the company, it seems like the Terra (LUNA) cryptocurrency will be worth buying at this moment.