LUNA is certainly an interesting coin, whose primary purpose is to stabilize the prices of fiat-pegged stablecoins offered on the Terra chain, as well as be used for governance. But do the unusual tokenomics make LUNA a good iinvestment? The market trends of the past few months say yes — but to take a look at LUNA’s future as well, read on!
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LUNA Fundamental Analysis
LUNA is a native token on the Terra blockchain, launched in 2018 by Terraform Labs. This chain hosts several fiat-pegged stablecoins, such as TerraUSD or TerraKRW, which are often collectively called Terra, too. LUNA has a few purposes in the network, one of which is to stabilize Terra coin prices. It also helps power Proof-of-Stake (PoS) consensus protocol and grants its holders voting rights.
The idea behind Terra is to drive crypto adoption by launching a whole basket of regional fiat-based stablecoins (their prices are broadcast on-chain by oracles) and supporting atomic swaps between them. This facilitates easy, low-fee cross-border transactions that allow its users not to worry about incurring losses due to the volatility usually inherent in crypto prices.
Terra's native token LUNA acts as a balancing token in this network. If any Terra crypto prices get “unhooked” from a fiat currency to which they’re pegged, the network users are incentivized to exchange their LUNA to Terra or vice versa. This makes Terra supply expand or contract, bringing its price back to the price of the fiat. As mentioned before, LUNA is also used for staking by validators and delegators in PoS protocol securing the network.
Since LUNA is so vital for the whole Terra ecosystem, long-term LUNA holders get rewards for staking their tokens. They are comprised of gas fees, taxes, and seigniorage rewards for functioning as oracles.
LUNA Live Price Chart
LUNA coin price has been affected by the crypto boom in the first half of 2021, which is no surprise. From ~$0.6 in January, the altcoin’s price grew almost to $22 by March. It had been trading mostly between $5 and $6 from the May crash until late June when LUNA price jumped toward $8 and later dipped back down for a short while.
Since mid-July, however, LUNA’s price has been skyrocketing, hitting an all-time high — $34.51 — in late August. This was in part caused by the expanding interest towards the Terra ecosystem as a whole: as demand for Terra stablecoins grows, their supply has to grow too, and to accommodate this, LUNA supply shrinks and its price goes up.
The team behind Terra has also promised some new developments that will probably improve the coins’ usability and expand the ecosystem. This, combined with the previous successes, made Terra's predictions, as well as the expectations about LUNA's future price, very hopeful at the moment.
LUNA Technical Analysis
After reaching an all-time high on August 24, LUNA’s price bounced back down, at the time of writing hovering around the resistance level at ~$27. This may well be a short setback since in the longer-term perspective price of Terra (LUNA) is still trending up.
High hopes for LUNA's future can also be justified by interpreting the latest developments as a bullish flag pattern: a consolidation phase is a necessary interruption to the price’s meteoric rise. In this case, all the positive LUNA predictions are probably right, and we may see it going to the moon very soon.
LUNA Price Prediction
#1. WalletInvestor LUNA Price Prediction for 2021, 2023, 2025
#2. TradingBeasts LUNA Price Prediction for 2022
#3. DigitalCoin LUNA Price Forecast for 2021, 2022, 2023, 2025
As it can be clear from the analysis cited above, LUNA (LUNA) projections are rather contradictory. There is no universal consensus either about positive or negative future LUNA price movements. Indeed, the future possible growth depends on various factors: announcements, new technological solutions of the LUNA projects, the crypto environment in general, legal position, and so on. We kindly remind you that before investing in any cryptocurrency, it is essential to do your own research (DYOR).
Should I invest in LUNA (Terra) cryptocurrency?
Yes, you should consider investing in LUNA (Terra) cryptocurrency, if you’re not afraid to step out of the familiar territory claimed by the largest cryptocurrencies like Bitcoin and Ethereum. As always with crypto, mind the risks, which are higher than for the traditional investments, but as it stands now, there’s reason to believe that positive LUNA price predictions will pan out.
Why do people think LUNA is such a good coin?
Many people think LUNA is a good coin because it has interesting tokenomics behind it. Terra is a rapidly growing ecosystem and LUNA is at its heart, so as long as there is a growing demand for Terra tokens and the necessity to balance Terra token prices, Terra (LUNA) will keep going up.
Will Terra (LUNA) crypto reach $100?
Yes, it’s in the realm of possibility for Terra (LUNA) crypto to reach $100. To get there, this token has to grow less than 4x, which it had easily done in the past. Some experts confirm this growth potential, with their Terra (LUNA) price predictions reaching those levels.
What is Terra (LUNA)?
LUNA is a balancing token in the Terra network, which is also a home for several stablecoins. LUNA can be staked to get rewards, as well as traded on the free crypto market. This has proved lucrative for many, as the token went through an explosive growth spurt as predicted by some of the positive LUNA price forecasts.
Can Terra (LUNA) coin reach $1000 at the end of 2025?
No, Terra (LUNA) probably will not reach $1000 at the end of 2025. This could be plausible only if demand for stablecoins on the Terra network grows very high. That would, in turn, cause a large part of LUNA supply to be burned, to keep stablecoins from deviating from Terra crypto price predictions. So, while not impossible, it is unlikely.
When will the Terra (LUNA) coin reach $100?
According to some experts, a good bet for when the Terra (LUNA) coin will reach $100 is 4–5 years. For example, Walletinvestor.com puts it close to this number in its Terra (LUNA) price prediction for 2025.
Is Terra (LUNA) a good coin to hold for the mid-term?
Yes, most LUNA coin price predictions agree that it’s a good coin to hold for the mid-term, quite a few LUNA long-term price predictions promise growth, too. Note that the Terra ecosystem also incentivizes people to hold and stake their LUNA in exchange for rewards, rather than getting rid of it short-term, so it’s definitely recommended to look into it, too.
What is the best exchange for buying Terra (LUNA)?
One can buy Terra (LUNA) on several large exchanges, including Binance, Huobi, and Bitfinex — those options are especially good if you want to buy your LUNA with fiat. If you’re looking into buying Terra with Bitcoin or another cryptocurrency, or want to explore non-custodial, instant exchange options — you’d get the best selection of them on SwapSpace.
SwapSpace is a cryptocurrency exchange aggregator that allows to swap over 450 cryptos with both fixed and floating rates. We gather the rates of major crypto exchanges on the market onscreen and let our users compare and choose whatever option they like the most. We don’t add any fees over the partners’ rates, which makes the exchanges via SwapSpace profitable. The exchange time is no longer than at any of our integrated services starting from 10 minutes. SwapSpace support works 24/7.