Connect with us

Terra

Terra will burn 88.7 million LUNA tokens worth $4.5 billion

Published

on

  • Terra will burn almost 88.7 million LUNA tokens worth $4.5 billion. 
  • It will be burned and swapped for the stablecoin UST. 
  • This burn will prepare the altcoins structure for the Columbus 5 upgrade. 

Terra, the algorithmic decentralized stablecoin project will burn $4.5 billion worth of its native coin LUNA from its community pool. The decision was taken through Terra’s on-chain governance system. According to their Twitter announcement, LUNA will be burned and swapped for UST, which is Terra’s native stablecoin. 

The burn will take place on every 800 blocks generated by the smart-contract based project. With this burn, Terra is planning to ease the native coin into its new upgraded structure Columbus 5. The UST stablecoin generated from the burn will be reallocated and distributed to the community pool. There’s still no announcement as to what will be done with the reallocated UST. 

Terra has stated that the burn will leave the community pool with 10 million LUNA tokens, which should be sufficient to meet the community demand. This massive burn will simplify the algorithmic altcoins rather complex economics and enhance its boost staking rewards. 

Terra will burn 88.7 million LUNA tokens worth $4.5 billion 1
Official statement from Terra on Twitter

LUNA prices are expected to go up 

As with any cryptocurrency, large volumes of token burning usually results in a price hike. After the announcement on Terra’s official Twitter feed, LUNA’s market price has already started to go up. The altcoin is up by over 7% in the last 24 hours. 

LUNA has already hit a new all-time high last week, after reaching $54.77, followed by a sharp decline in the $47 range. According to Terra’s governance proposals 133 and 134, the project will use LUNA to bootstrap its decentralized insurance system Ozone. But how much of it will be allocated to bootstrap Ozone will only be determined after the whole stockpile of 88.7 million tokens are burnt and swapped for UST. 

Advertisement

The altcoin is currently trading at $50.98, inching towards its previous all-time high. 

News Source

Advertisement

Terra

Terra (LUNA) rises 65% in 7 days, reaches historic high and passes Shiba Inu (SHIB); see predictions

Published

on

In the last 24 hours, the LUNA cryptocurrency, from the Terra blockchain platform, was the one that appreciated the most among the 100 largest cryptoactive assets in market value, jumping 13%.

After hitting a high of more than 65% in the last week, the digital currency reached its historical record price of US$ 65.41 this Thursday (2).

With the rise, LUNA’s market value jumped to $24.8 billion. This value raised the token to 12th position in the CoinMarketCap (CMC) cryptocurrency ranking.

Advertisement

Now, the coin supported by Mike Novogratz is worth more than Shiba Inu (SHIB), who is ranked 12th on the CMC.

On Earth (LUNA)

Terra is a blockchain platform that offers a set of algorithmic stablecoins pegged to fiat currencies.

In this ecosystem, the native LUNA token is responsible for ensuring the price stability of these stablecoins. Your supply adjusts to the level of demand with the help of the protocol’s mint/burn feature.

Advertisement

In addition, network validators staking Luna in order to verify transactions. In addition, the token is also used to vote on various governance decisions.

According to data provided by DeFi Llama, Terra has a 4.69% share of the smart contracts market. In all, the protocol has $12.84 billion in total blocked value (TVL).

In late September, Terra released its long-awaited Columbus-5, which ensures interoperability with other blockchains.

Advertisement

Price Forecasts for Land (LUNA)

According to analyst Akash Girimath, the price of Terra looks ready for a small correction after the record.

“The recent rally has pushed LUNA up without a major pullback, making the anticipated pullback highly likely. From a broader perspective, LUNA has seen an exponential increase. For this reason, investors can now expect a correction to follow.”

According to the analyst, an increase in profit taking is likely to bring altcoin down to the immediate support level of $59.71. If this level is not maintained, LUNA could drop further to $55.21 or even $51.69.

Advertisement

On the other hand, should LUNA’s price manage to produce a daily close above $65.61 it could reach the 161.8% Fibonacci extension level at $68.94, invalidating the bearish thesis.

Price Projection for LUNA

Also read: Again: Badger DAO protocol loses BRL 676 million in attack

Also read: Vitreo launches two more cryptoactive funds focusing on Smart Coins

Also read: Santos token staking pool kicks in at PancakeSwap: see how to win

Advertisement

News Source

Continue Reading

Terra

Is it about time Terra breaks its price downtrend and reignites rally

Published

on

After Bitcoin’s Black Friday crash, the entire market seemed to turn red barring some altcoins like Crypto.com coin and surprisingly, Terra (LUNA). In fact, LUNA was one of the only alts in the top 20 to see over 5% daily and 8% weekly gains. 

Layer-1 protocols like Avalanche (AVAX) and Terra (LUNA) have been able to record high year-to-date returns. LUNA’s yearly ROI v. USD, at the time of writing, stood at a staggering +11749.61%. However, the 14th ranked altcoin has closely followed BTC’s price movement since 16 November, post which, it registered close to 25% losses. 

LUNA making a return?

LUNA’s price made lower lows after its price fall on 16 November, even though AVAX’s trajectory gained momentum soon after. It seemed like LUNA was more affected by the larger market fall and followed Bitcoin’s price. In fact, its RSI too has been on a downtrend since 9 November. 

Advertisement

Source: TradingView

Since 26 November, however, LUNA started seeing minor gains as its RSI broke out of the downtrend it was in all through November. At the time of writing, the alt’s price had broken above the crucial $45.56-mark which has been an important resistance for LUNA. 

Keeping aside the recent price falls, LUNA’s macro-uptrend still remains intact. In fact, post-Terra’s Columbus-5 upgrade, LUNA’s price has maintained a decent trajectory, performing independently from the market. 

TerraUSD, Terra’s native stablecoin backed by LUNA, has also seen growth in its market cap over the last month. Its market cap rose from under $3 billion on 10 November to $7.17 billion, at the time of writing. 

Advertisement

Source: Messari

Here’s what’s missing

After hitting the $10 billion mark, Terra’s TVL began to decline over the last week, falling to $9.39 billion, down 6% from last week. This fall in its TVL could be indicative of the waning institutional interest as the alt’s price closely followed BTC’s price.

Source: Coin98Analytics

Furthermore, missing retail FOMO in Terra’s rally seemed to be a worrying trend. Notably, trade volumes have been pretty low and a macro downtrend in trade volumes since October could be seen. 

Nonetheless, the alt’s price seemed to finally break away from the downtrend as its funding rate saw an uptick. In fact, its Open Interest on the Perpetuals market saw an almost 4% increase.

Advertisement

A lack of both institutional and retail interest in the alt could be one reason behind its price falls, apart from the positive BTC correlation which the alt seemed to break at the time of writing. With the price trend for LUNA picking up pace, a move from the retail side can push the crypto to new ATHs.

News Source

Advertisement
Continue Reading

Terra

Terra (LUNA) Price Prediction 2021-2025

Published

on

Terra (LUNA) could be a big winner as stable coins rise to prominence in the crypto world. This crypto also has a pretty large-cap asset of $16.3 billion. It’s a little larger than Chainlink and the 12th largest crypto. LUNA’s blockchain protocol uses fiat-pegged stablecoins to power price-stable global payment systems.

The 1-day price chart for Terra price analysis shows that the coin traded in a range of $43 to $46 while swinging wildly towards extremes of $42.2 on the lower side and $47 towards the upside. Currently, the LUNA/USD pair is trading hands at $49.96 at the time of writing. LUNA also reports an increase in value by 9.6 percent over the last 24 hours and an increase in value by 5.41 percent over the past week.

Its current performance is quite impressive but let’s get to know the Terra (LUNA) background first.

Advertisement

What is Terra (LUNA)?

Terra is a crypto payment solution that has gained a lot of traction since its initiation in January 2018 by Daniel Shin and Do Kwon, the men behind Terraform Labs.

The platform was built to keep in mind the price volatility of blockchain-based assets and perceive them. Terra focuses on price stability and usability and uses smart contract-enabled cryptographic versions of fiat currencies, called stablecoins, in its platform.

Terra has already rolled out multiple fiats pegged stablecoins, including TerraUSD (UST), TerraCNY, TerraKRW, TerraEUR, and many more digital currencies. The platform offers easy and quick transactions across borders without any hassle and is used by retailers worldwide.

Advertisement

The native token of the network, LUNA, is an important element in the Terra Ecosystem and is responsible for the platform’s governance. The LUNA token is responsible for operating the collateralizing mechanisms which keep the stablecoins in check and avoid massive fluctuation.

LUNA uses the Proof-of-Stake consensus and has an elastic supply depending on the platform’s need for stablecoins in circulation. Terra has its wallet, called the Terra Station, that can give direct access to stablecoins. One can access the DApps built on the Terra blockchain by using the wallet. Furthermore, the Terra Station can operate on a phone as well as a computer without failure.

Terra price history

The LUNA coin has performed incredibly well in the year 2021. While the all-time high LUNA price rests at 54.77 USD as of Nov 27, the token started the year at $0.6. The token is ranked 14 on the market with an average trading price of $43 after the recent market crash.

Advertisement

The LUNA price crossed $1 in January and later reached a peak of $6.4 in February. As the investors got the ‘buy Terra’ signal, the prices ran higher for the token. The token rallied to $21 by March-end and made a new all-time high.

However, this ATH was followed by a bearish movement, due to which the prices of the token dropped as low as 4.1 USD during May while other altcoins were nearing their peak.

Terra Network price current price and bullish trendTerra Network price current price and bullish trend by CoinMarketCap

As seen in the chart above, the token rallied to a new ATH towards the end of July. By September-mid, the token witnessed a new all-time high above $30. This bullish momentum continued as the token rose by 23% in September and 10% in October.

Advertisement

Terra technical analysis

LUNA's bull market

Currently, the prices are above the 50-day and 100-day Moving Averages on the daily chart, moving towards the Bollinger Bands’ upper end.

The price fractal shows a general uptrend for the cryptocurrency, and higher prices will follow once bulls take charge.

Terra price prediction 2021-2025

In this section, we will discuss Terra price predictions and analyses done by major analysts. Most of these analysts consider Terra a good investment and expect LUNA price to increase shortly.

DigitalCoinPrice’s Terra price forecast

According to the price prediction by DigitalCoinPrice, the average price of the token will be 64.73 USD by the end of 2021. By 2022, the Terra prices will reach 78.34 USD, followed by 95.22 USD for 2023. On the other hand, for 2024, the price forecasts state $109.84, followed by 136.85 USD for 2025.

Advertisement

Following 2025, according to DigitalCoinPrice, Terra (LUNA) has a bright future ahead, and the price prognosis states a price of 155.33 USD for 2026, 168.23 USD for 2027, and 192.17 USD for 2028.

The Terra (LUNA) Coin price will prove a good investment for many coin holders as Terra’s price crosses $100.

Terra  Price Prediction by DigitalCoinPrice

Price Prediction Terra (LUNA) by DigitalCoinPrice

Terra (LUNA) price prediction by WalletInvestor

The LUNA price prediction by WalletInvestor states a value of 91.921 USD in a year from now. Furthermore, five years from now, the digital currency Terra (LUNA) is expected to reach $91.

Advertisement

2021

The Terra price prediction for 2021 states that the token will end in 2021 at an average price of 44.877 USD, followed by a maximum price of $49.801 and a minimum of $39.839.

2022

Advertisement

On the other hand, the token will end in 2022 at an average price of 95.365 USD, followed by a maximum price of $104.277 and a minimum of $85.834.

2023

On the other hand, the token will end in 2022 at an average price of 145.858 USD, followed by a maximum price of $167.406 and a minimum price of $126.469.

Advertisement

2024

On the other hand, the token will end in 2022 at an average price of 196.271 USD, followed by a maximum price of $234.098 and a minimum price of $160.974.

2025

Advertisement

For 2025, the token will end the year at an average price of 246.731 USD, followed by a maximum price of $302.410 and a minimum price of $192.130.

WalletInvestor LUNA price prediction
WalletInvestor Terra price prediction

TradingBeasts Terra (LUNA) price prediction

The cryptocurrency Terra price analysis states that if the coin survives the bear market, LUNA’s price will rise as it takes a position in the top 10 biggest cryptocurrencies in the crypto market.

While virtual currencies will play an important part as the cryptocurrency market challenges mega giants. The LUNA price prediction 2021 by TradingBeasts says that the token will reach a minimum price of $30.247, followed by a maximum value of $44.480 and an average price of $35.584.

This is not a bullish prediction by the website. However, taking into account the bullish action of the token, the bears might present good investment opportunities.

Advertisement

The token will reach a minimum price of $36.430, followed by a maximum value of $53.573 and an average price of $42.859 for 2022.

The token will reach a minimum price of $44.013, followed by a maximum value of $64.726 and an average price of $51.780.

The token will reach a minimum price of $51.815, followed by a maximum value of $76.199 and an average price of $60.959.

Advertisement

How will LUNA add stability to the crypto market?

Think of Terra as big, decentralized financial infrastructure. It’s a protocol, but it also has a lot of utility with stablecoins. What it’s trying to do is to hold the stablecoins within its system steady. A stablecoin is a coin, by definition, in nature that doesn’t fluctuate very much in real-time. It uses its technology to match supply and demand and tries to keep its stablecoins stable algorithmically. 

You could use this technology through its stablecoins and through its native token to achieve the same thing. It’s got e-commerce applications. Terra is really interesting in that regard, and it’s building out the plumbing for what could be a rather big stablecoin market. It’s just starting to grow right now, but it’s got a long way to run.

Conclusion

Terra is a good long-term investment as the utility of the token will necessarily reflect upon the prices. It is also a good short-term investment and is ready to break psychological resistance levels and enter the $100 league.

Advertisement

Terra LUNA supports stablecoins which include a US dollar stablecoin (UST), a euro stablecoin (EUT); a Canadian dollar stablecoin (CAT); and a Japanese yen stablecoin (JPY). You can see the emphasis here on that cross-border payment and trying to cut out the volatility.

On the whole, LUNA is a good investment and with a circulating supply of 394,670,383 LUNA. In the past few months, the token rose by a massive percentage. While the prices continue to be bullish for the token, we recently saw a massive surge in Terra adoption.

FAQs

Is Luna a good investment?

LUNA is a good investment to hold in your cold storage. The prices continue to be bullish for the token, and once the bulls take control, we might see higher prices.

Advertisement

However, recently we saw the CEO of Terraform Labs, Do Kwon, being sued by the SEC over creating Mirror Protocol. Terraform Labs is the company behind the Terra (LUNA) token.

Will LUNA go up?

According to every major investor in the market, Terra prices will go up. Shortly, we might expect the token to breach the $100 price level and move towards the $500 level. The popularity of Terra’s stablecoins is also a reason for the bullish predictions for the token.

News Source

Advertisement
Continue Reading