*Caution* Due to unexpected crash in May 2022, I would advise all to proceed with extreme caution for this token.
Before we begin with Terra price prediction, let us discuss how Terra has impacted the financial landscape by serving as a decentralised financial payment network that substitutes the standard payment stack on the blockchain.
Terra’s worldwide payment systems are powered by fiat-pegged stable coins. Its unique characteristic serves as a significant impetus for completely eliminating the barrier associated with token mining. In certain ways, it fosters transparency by averting the need for intermediaries or permission. Thus, rather than individual cryptocurrencies such as Bitcoin or Ethereum its native token LUNA, is more akin to a programmable asset that addresses issues of speed, scalability, and accessibility.
December 27th update: DeFi Traders Increase Terra’s UST Stablecoin’s Market Cap to $10 Billion.
Introduction
Four of the world’s major crypto exchanges are spearheading a $32 million investment in an ambitious endeavour based in Korea that aims to create a new stable coin around e-commerce.
Dunamu, Binance Labs, Huobi Capital and OKEx have all invested in Terra, a crypto project led by Daniel Shin, the president and founder of TicketMonster, a $1.7 billion Korean e-commerce company previously owned by Groupon and Living Social.
This is the first-time worldwide exchanges have collaborated and the strong investor lineup includes Polychain Capital, 1kx, Kinetic Capital, China’s FBG Capital, Hashed and Arrington XRP.
According to Shin, Terra intends to execute a private sale in the upcoming weeks to raise additional funds from this “very strategic” group of investors.
Stablecoins Terra
While it is touted as a stable coin in its whitepaper and other documents, it is more appropriate to think of it as a finance platform — similar to Alibaba’s Alipay on the blockchain. That is because the endeavour will begin by collaborating with a bevvy of e-commerce enterprises in Korea and around Asia.
Shin noted that Terra’s goal is to supplement existing payment systems by delivering a Stripe-like payment option that would allow users to pay using its coin. For merchants, this may imply avoiding established payment networks such as Visa, which take a cut of all income.
In contrast, the initiative could assist in providing incentives for users to purchase using the token, such as discounts that do not increase the e-commerce platform’s cash burn.
Because purchasing crypto and using wallets is not yet common there is also the possibility for customers to earn tokens when they use platforms. The token would be redeemable for goods and services across all supported e-commerce platforms.
It has already recruited a sizable number of partners. There are 15 e-commerce services joined up, including Carousell, Pomelo Tiki and Woowa Brothers, which collectively have 40 million customers and a transaction volume of approximately $25 billion.
Shin stated that the project is focusing on Asia due to the region’s high level of crypto activity. He believes Terra can capture a portion of the payments made by partner firms.
Terra Crypto Review
Should you Invest in Terra Cryptocurrency? Terra has grown in popularity dramatically despite the fierce competition in the market of stablecoins used to stabilise prices in global payment networks. It aims to reduce volatility through the use of fiat-pegged stablecoins and a patented algorithm that automatically adjusts the stablecoins’ supply in response to demand.
LUNA provides liquidity and price stability, and it may be easily exchanged for other stablecoins at advantageous exchange rates. LUNA prices have risen significantly in recent years, bursting more than 2000% in the previous few months.
December 20th update: Terra’s price is $74.19 USD at the time of writing.
Terra has established a number of partnerships, and current enthusiasm surrounding non-fungible tokens (NFTs) has fueled the popularity of a number of cryptocurrencies, including LUNA. Terra Luna crypto has significant potential for continued development, with a continuous increase in price anticipated over the next few years.
Key Points to Note
Terra already has millions of users and is working on various major projects. If you’re considering investing in Terra, here are the critical points to consider:
- The Terra protocol supports several stablecoins denominated in various currencies
- Terra’s primary focus is on stablecoins, or cryptocurrencies that are pegged to another asset. There are already a number of stablecoins, most of which are pegged to the USD. TerraUSD (UST) is one of those, but the company also sells stablecoins pegged to a variety of other currencies, including the South Korean won, the Euro, and the Mongolian tugrik.
- Because stablecoins often keep their value, they stand a better chance of gaining traction as a means of transferring payments and purchasing goods and services. Because the majority of cryptos are volatile, their applications are limited. Individuals who purchase them frequently keep them in the hope that the price will increase. Businesses are hesitant to adopt them because the price may decrease as well.
December 16th Update: Luna surges to near US$80 as Terra passes BSC and UST passes Dai.
Benefits of Terra Luna Coin
Terra Luna tokens contribute to the price stability of its Stablecoin
Terra uses Luna tokens to keep its stablecoin prices where they should be. It incentivizes trading between Luna and stablecoins when the stablecoin supply needs to be increased or decreased.
Consider the following hypothetical scenario: UST, Terra’s US dollar stablecoin, is in demand. As a result, the price has increased to $1.05, when it should be $1. Terra needs to increase the quantity of UST tokens to offset this.
It then allows holders of its Luna tokens to convert them to UST, with each dollar of Luna equal to one UST. Then, token holders can sell the UST at the higher price of $1.05, earning a 5% profit on the amount of Luna converted.
This is true for all of Terra’s stablecoins. Additionally, Terra allows stablecoin holders to convert to Luna at a profit during periods of low demand. This limits the stablecoins’ supply and forces the price back up.
Luna tokens are used for staking and project governance
Stakeholders of the Luna tokens may do so. When you put Luna on stake, you entrust the network with those tokens, which are used to verify transactions. This carries no danger. You can always remove your staked tokens (unstaking can take up to 21 days). If you hold Luna, you will earn a portion of the transaction fees that Terra collects when its stablecoins are used.
Additionally, token holders have a say in Terra’s development. Luna holders have voting rights too in the project, as it is a governance token.
Terra is the most widely used in South Korea.
It has achieved the majority of its success so far in South Korea. According to a video from May 2021, the stablecoin pegged to the South Korean won is utilised by over 2 million people annually for transactions totaling over $1 billion. It’s stablecoin, pegged to the Mongolian tugrig, was reportedly utilised by 40,000 people on a monthly basis, according to the video.
It already has a customer base, which is a plus. There is no assurance that it will grow effectively to the United States, but as we will see, it is offering a significant incentive to purchase its US dollar stablecoin.
December 14 update: Terra, which trades under the symbol LUNA, now has a market value of $28.58 billion, greatly above the market capitalisations of Dogecoin and Shiba Inu.
Terra is giving a 20% interest rate on UST.
Terra introduced the Anchor savings and lending protocol on March 17, 2021. This protocol enables users to deposit and receive interest on stablecoins. Annual interest on UST deposits is approximately 20%.
Given that UST is a stablecoin with a fixed value of $1, earning 20% interest on it seems appealing. It’s worth remembering that interest rates are subject to change in the future, and even stablecoins are not as secure as cash in a savings account.
The high-interest rate may aid in the growth of UST’s customer base. If this occurs, it will almost certainly benefit the price of Its Luna token.
Purchasing It can be Difficult
The most challenging aspect of purchasing Terra’s Luna token is finding an exchange that trades it. The majority of the world’s largest bitcoin exchanges do not. The following are a few venues where you can purchase or trade Luna:
- Binance
- Crypto.com
- Voyager
Terra Crypto Price Predictions – (LUNA) in the Years 2021-2025
The one saving grace of the current market situation is that it has not exhibited any currency discrimination. The majority of fiat currencies, as well as for cryptocurrencies, have met the same end. Cryptocurrencies recovered rather quickly in comparison to traditional financial instruments in this bearish market.
Terra’s price is $90 as of 27th December 2021, with a 24-hour trading volume of $3,324,534,334 USD. The price of LUNA has decreased by -6.21 percent over the last 24 hours. There are 370 million LUNA coins in circulation and a total supply of 846 million.
Without a question, there is a sense of hopefulness in the cryptocurrency market in the distant horizon based on price forecasts.
Price Forecast for 2021
Terra Luna’s pricing is expected to trade between $85 to $92. The bearish trend is expected to stabilize in the last few days of December. This should be a strong motivation for traders and other investors to invest in Terra.
December 27th Update: LUNA would have to maintain $89 critical level to restart rising.
Terra Price Forecast for 2022
Having begun late last year, the LUNA currency will show a bullish trend into 2021 and will continue to ride news waves into 2022. Between the years of 2021 and 2022, a price explosion could occur, bringing it to a high of $150 with significant price variations in between.
Terra Price Forecast for 2023
With prices fluctuating between $150 and $190, Terra crypto price may demonstrate some resistance, but it is difficult to say with clarity about the LUNA price projection whether these three years will be the crypto coin LUNA’s golden era. Significant changes in industrial situations, market positions, economic overruns, policy reorganization, or any other reason for the coin to host its performance are possible. LUNA is well-known for its resilience and consistency; global economic conditions may also have an effect on Terra price projections.
Terra Price Forecast for 2024
Additionally, some experts believe that the Terra price forecast may be effective during this time frame, propelling crypto to a price of roughly $250 in 2024 while acting as a market maker. LUNA’s price is also affected by regional variations. As a result of achieving its futuristic ambitions, one thing about the LUNA is certain: the stars shine bright for this coin.
Terra Price Forecast 2025
After revolutionizing the worldwide page of transactions, LUNA pricing sets out on a journey to leave an indelible imprint on this ecosystem. According to certain projections for Terra’s price in 2023, the price of LUNA would similarly ride the bull market through August 2025, possibly reaching a new high of $300. Terra seems to be striving to establish a record that will reaffirm its position as stable.
Is Terra coin a good investment?
The crypto community has high aspirations for Terra, and it is surely a fantastic platform for developers and engineers looking to create additional decentralized applications. Given that LUNA is a new project and is relatively unknown to the public, it is up to the leadership team to steer it on the right path in order to maximize the goals set for the purpose of increasing the price. There are better possibilities, but it all comes down to how the entire digital currency industry, which includes Bitcoin, Ethereum, and others.
At Solutiontales we make it easy to understand the throes of cryptocurrencies, but our words should not be taken as a financial advice. Remember, a wise investor can make money in a bull or bear market when given the right data.