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Terra (LUNA) is a blockchain protocol that uses stablecoins to enable price stability in global payment networks. It combines price stability and fiat currencies by enabling Bitcoin (BTC), thus offering cheap settlements. Terra uses fiat-pegged stablecoins and keeps a “one stablecoin to one fiat” peg through a proprietary algorithm that automatically adjusts stablecoin supply based on its demand. Its token, LUNA, provides liquidity, price stability, and is easily swappable for other stablecoins at profitable exchange rates.
Terra has garnered a lot of attention due to its token LUNA, which exploded in price recently, increasing by more than 2,000% in two months. Its current market capitalization is USD 7.3 Billion, leaving room for further growth.
However, Terra's price has been volatile. In May 2022, the original LUNA token was devalued and renamed LUNC. A new blockchain and its token, Terra 2.0, were developed, and the LUNA token was distributed through the airdrop technique. As of August 2024, Terra's price is around USD 0.335, with a market capitalization of USD 518,371,989, and a circulating supply of 616,573,163 LUNA.
While some sources claim that Terra has the potential to be a good investment in the long term, others warn that it is a risky option, and investors should do their research before putting their money into it.
What You'll Learn
Terra's price history
Terras Price History
Terra (LUNA) is a cryptocurrency that was launched in 2018 by Terraform Labs, with the aim of creating a decentralised financial payment network that could replace the conventional payment stack on the blockchain.
Terra reached an all-time high of $19.54 on 28 May 2022. However, the price of LUNA experienced a sharp decline shortly after, losing its peg to the US dollar and falling to $0.9654, a decrease of 95.05%. This was due to the collapse of UST, which saw Terraform Labs liquidate all their 40,000 BTC holdings to stabilise the UST peg.
Following the crash, a revival plan was proposed by Do Kwon, the CEO of Terraform Labs, which involved forking the Terra Blockchain and creating a new chain and token. The new blockchain, Terra 2.0, launched in May 2022, with the new token, also called LUNA, distributed through airdrops to UST holders, LUNC stakers, and LUNC holders. The original LUNA token was renamed LUNC, and the original blockchain was rebranded as Terra Classic.
As of August 2024, the price of LUNA 2.0 is $0.335, with a market capitalisation of $518,371,989, a circulating supply of 616,573,163 LUNA, and a 24-hour trading volume of $48,774,388. While there are signs that LUNA might gain traction in the coming years, the short-term outlook for the token is neutral.
As of September 2024, the price of LUNC is $0.000084, with a 24-hour trading volume of $12,901,376. The current market cap is $476,985,620, with a circulating supply of 5,696,274,459,279 LUNC.
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Terra's price predictions
Terra (LUNA) Price Predictions
Overview
Terra (LUNA) is a cryptocurrency launched in 2018 by Terraform Labs, founded by Do Kwon and Daniel Shin. It is a decentralized financial payment network that replaces the conventional payment stack on the blockchain. The Terra ecosystem uses fiat-pegged stablecoins to power price-stable global payments systems.
Recent Performance
LUNA was trading at $0.335 USD on 21 August 2024, down from its all-time high of $19.54 on 28 May 2022. The current price represents a 95.05% decline from its peak. The LUNA token experienced a sudden price crash in May 2022, which led to a de-pegging of its stablecoin UST and a massive crypto crash. The new LUNA 2.0 token was launched on 28 May 2022, starting at a price of $17 and peaking at $19.54. However, it has since declined by more than 90%.
Short-Term Predictions
According to short-term predictions, LUNA may continue to face challenges. Wallet Investor predicts a potential decline in LUNA's price from $0.335 USD to $0.0444 USD, representing an 86.758% drop. The site's technical analysis indicates that LUNA is a bad long-term (1-year) investment option with a negative outlook.
On the other hand, some sources suggest that LUNA might gain traction in the upcoming years, with a potential high of $1.651 by the end of 2024. The average price for 2024 is expected to be around $1.13, with a potential low of $0.621.
Long-Term Predictions
Long-term predictions for LUNA vary, with some sources anticipating recovery and growth, while others remain bearish.
Digital Coin Price expects the LUNA/USD pair to trade around $3.43 by 2025, indicating a positive outlook.
Price Prediction analysts believe the price could reach $2.94 by the end of 2025, reflecting a potential recovery.
Changelly's LUNA coin price prediction estimates an average price of $5.95 for 2027 if the market experiences a good bull run in 2024.
According to Terra price predictions for 2030, the LUNA token is expected to reach a maximum price of $6.96, with a minimum of $4.83 and an average trading price of $5.89 during the first half of the year.
While some sources predict a potential recovery and long-term growth for LUNA, others maintain a bearish outlook, highlighting the challenges and volatility faced by the token. It is important to note that cryptocurrency markets are highly volatile, and price predictions should be treated with caution. Conducting thorough research and understanding the risks associated with crypto investments is essential before making any investment decisions.
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Terra's blockchain technology
Terra is a blockchain protocol and payment platform for algorithmic stablecoins. The project was created in 2018 by Terraform Labs, a startup co-founded by Do Kwon and Daniel Shin. It was best known for its Terra stablecoin and the associated LUNA reserve asset cryptocurrency.
The Terra blockchain uses a proof-of-stake consensus mechanism. It is built on the Cosmos SDK and Tendermint Consensus. The blockchain hosts a diverse ecosystem of products and services, including an array of decentralized applications (or DApps) such as Anchor, Mirror, and Pylon.
The unique feature of Terra is that it acts as a major catalyst in entirely removing the hurdle concerning token mining. It promotes transparency by eliminating mediators or permissions. The native token of Terra, called LUNA, is more like a programmable asset that addresses speed, scalability, and accessibility issues.
In May 2022, the Terra blockchain was temporarily halted after the collapse of the stablecoin TerraUSD (UST) and LUNA, which wiped out almost $45 billion in market capitalization within a week. This event caused the price of LUNA to fall to virtually zero, down from an all-time high of $119.51. Before the crash, LUNA was one of the top ten largest cryptocurrencies in the market. The new LUNA token, called "Terra 2.0" by investors, is not pegged to any stablecoins, unlike the previous Terra ecosystem.
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Terra's stablecoins
Terra is a blockchain payment network that uses fiat-pegged stablecoins to power price-stable global payments systems. The Terra ecosystem uses its native LUNA currency as a utility and governance coin to operate the collateralizing mechanisms that back and secure the price stability of the Terra network's stablecoins. This means that LUNA coins have an elastic supply that fluctuates according to the needs of Terra’s collateralization mechanism.
Terra has already rolled out numerous stablecoins, including: TerraUSD (UST), TerraCNY, TerraJPY, TerraGBP, TerraKRW, and TerraEUR. These stablecoins offer seamless cross-border value exchange and instantaneous swaps between one another, all while employing instant settlement and extremely low fees for use by anyone, anywhere.
The Terra blockchain is built to enable the next generation of Web3 products and services. It is supported by the global #LUNAtic community and a deep developer talent pool.
The Terra wallet allows users to interact with numerous Terra-based decentralized applications (dApps) built on the platform to swap tokens, delegate LUNA to validators, and manage funds, among other purposes.
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Terra's potential for growth
Terras Potential for Growth
Terra (LUNA) is a blockchain protocol that uses stablecoins to enable price stability in global payment networks. Terra combines price stability and fiat currencies by enabling Bitcoin (BTC), thus offering cheap settlements. Terra uses fiat-pegged stablecoins and keeps a “one stablecoin to one fiat” peg through a proprietary algorithm that automatically adjusts stablecoin supply based on its demand. This is made possible by their token LUNA, which provides liquidity, price stability, and is easily swappable for other stablecoins at profitable exchange rates.
Terra blockchain has garnered a lot of attention thanks to its token LUNA, which has exploded in price recently. In the past two months, LUNA has made a 2000% increase in price. On a fundamental view, the company has made many partnerships with payment platforms, mainly in the Asia-Pacific region. Back in July 2019, Terra announced a partnership with Chai, a South-Korean-based mobile payments application. Purchases made using the application on e-commerce platforms are processed via the Terra blockchain network.
From a technical viewpoint, the token LUNA exploded from a low price of USD 0.9 back in Jan 2021, to today’s price of USD 18.5. This price increase comes in tandem with the latest NFT hype, which also attracted many enthusiasts from different industries. Therefore, with a current market capitalization of USD 7.3 Billion, there is definitely room for further growth, especially as the cryptocurrency market is on a bull run.
The initial supply of the new token is 1,000,000,000, while the mint module will continue to release new tokens every block as staking rewards. The default rate is approximately 7% per annum. Terra (LUNA) is currently ranked #91 in the cryptocurrency market.
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Frequently asked questions
Terra Crypto has been deemed a bad long-term investment by Wallet Investor. The Terra blockchain and its token, LUNA, have garnered a lot of attention, with the latter exploding in price by 2,000% in two months in 2021. However, this surge was deemed unsustainable by many skeptics. Terra 2.0 emerged after the original LUNA token was devalued in May 2022, and it is difficult to predict anything for the long term.
Terra is a blockchain protocol that uses stablecoins to enable price stability in global payment networks. It combines price stability and fiat currencies by enabling Bitcoin (BTC), thus offering cheap settlements. Terra uses fiat-pegged stablecoins and keeps a "one stablecoin to one fiat" peg through an algorithm that adjusts stablecoin supply based on demand.
As of September 13, 2024, the price of Terra Crypto is $0.9654, down 95.05% from its all-time high of $19.54 on May 28, 2022.
Terra (LUNA) was launched in 2018 by Terraform Labs, owned by Do Kwon and Daniel Shin. It brought about a change as a decentralized financial payment network that replaces the conventional payment stack on the blockchain. The unique feature of Terra (LUNA) acts as a major catalyst in entirely removing the hurdle concerning token mining, promoting transparency by eliminating mediators or permissions.
According to Terra price predictions, there is a potential for growth. By the end of 2024, the LUNA token is anticipated to reach $1.651. In 2025, the maximum price is expected to be around $2.08. By 2030, the maximum price is predicted to be $6.96, while the minimum may be around $4.83. However, it is important to note that these are just predictions, and the future performance of any cryptocurrency is uncertain.
