LUNA is the native token of the Terra network which in March 2022 saw an increase of almost 70 percent. Citing Coindesk , Staking Rewards data shows the price of the LUNA token experienced a spike over the past week in early March 2022. This made it the second largest staking asset in the world, surpassing Ethereum (ETH), which has a staking value of US$28 billion.
However, as of May 12, 2022, Terra Luna had fallen more than 97 percent in today’s trading session. Most cryptocurrencies have also fallen this week. So, what are the predictions for the price of Terra (LUNA) in 2022 according to experts? Will Terra (LUNA) bounce back?
Read on for the following review to find out the answer!
Terra (LUNA) News Update
LUNA has experienced a significant decline of 97 percent over the last 24 hours since May 12, due to the fall in UST prices.
The price of LUNA fell sharply as UST, Terra’s stablecoin, fell by more than 1 USD which resulted in investors selling off their assets. The reason behind the UST crash was that the US dollar depreciated on May 9, 2022.
BusinessToday analysts mentioned that the incident had caused a strong shockwave in the crypto market as it revealed the disadvantages of stablecoins which rely directly on supporting algorithms (unlike USDT and USDC which are backed by fiat money). ).
Therefore, the collapse caused investors to sell LUNA resulting in the biggest drop in Terra (LUNA) price on record.
On May 13, 2022, the Terra Blockchain was officially discontinued at block height 7603700 . Terra’s validators have decided to discontinue the Terra chain to prevent governance attacks following severe $LUNA inflation and a significant reduction in the cost of attacks .
Know What Terra (LUNA)
Terra (LUNA) is a blockchain protocol that uses stablecoin assets valued at fiat currencies to support a global payment system.
Unlike other stablecoins , Terra combines price stability and greater adoption of fiat currencies with the censorship of Bitcoin (BTC) while offering fast and affordable transaction processing.
Terra (LUNA) was founded by Daniel Shin and Do Kwon, in January 2018. Although still relatively new, Terra has managed to establish a number of partnership relationships with various payment platforms, especially in the Asia-Pacific region.
In 2019, Terra announced its partnership with Chai, a South Korea-based mobile payment app.
LUNA has a stockpile of 1 billion tokens. If this number is exceeded, LUNA tokens will be destroyed ( burn ) until they return to the equilibrium supply level. After that, new LUNA tokens are minted through the protocol algorithm with the required amount to maintain the price of the Terra stablecoin
Price of Terra (LUNA) from Year to Year
The following is the price movement of Terra (LUNA) from 2019-2021
Terra (LUNA) Prices from 2019-2020
LUNA was first made available for investors to purchase in the form of private token sales on a number of major exchanges. The sale ended in August 2018 and Terra managed to raise US$32 million.
A year later, on August 2, 2019, the price of Terra (LUNA) USD 1.24. Then the price of Terra (LUNA) on August 14, experienced a spike to touch the figure of Usd 1.36.
However, this increase was followed by a decrease, where until the end of 2019 the price of Terra (LUNA) to USD was valued at USD 0.20.
In 2020, the launch of Terra Protocol’s DeFi and stablecoin projects brought LUNA’s market cap to 200 million US dollars.
The Highest Terra (LUNA) Price in 2021
In May 2021, LUNA’s price slumped about 81 percent of its market value due to a massive sell-off. However, LUNA managed to make a position reversal in early December 2021.
LUNA broke the all time high (ATH) at the level of usd 77.01 on December 5, 2021. Coingecko data shows Terra experienced an increase of more than 50 thousand percent from the all time low price (ATL) at the level of usd 0.12 on March 18, 2020. Skyrocketing prices LUNA managed to overtake two of the leading meme coin assets , namely Shiba Inu and Dogecoin.
A few weeks later, Terra (LUNA) again showed an extraordinary performance. The price of LUNA skyrocketed and managed to record an all-time high (ATH) of all time at usd 101.66 on December 27, 2021. Again, this price increase made Terra (LUNA) immediately rise past Avalanche (AVAX), Polkadot (DOT) , and Dogecoin (DOGE).
On March 7, 2022, the price of Terra (LUNA) to USD was at USD 81.84, occupying the seventh position as the largest crypto lineup in the world by market capitalization.
The DeFi Llama platform reported Terra ‘s total lock-in value (TVL) in December 2021 was USD 19.32 billion, an increase of nearly 36,250 percent from the January 1, 2021 TVL which was only USD 53.15 million.
Terra (LUNA) Price Prediction According to Experts
A number of LUNA investors were worried, because the price of Terra (LUNA) had fallen sharply. Even today (12/05/2022), the price of LUNA is at 0.2961 USd where the figure is in free fall of 97.30 percent.
The price of UST (TerraUSD) also fell from the previous value of 1 US dollar to 0.6694 US dollar, down about 15 percent. This is the main reason that causes negative sentiment for Terra (LUNA).
However, what do the experts think about the price of Terra (LUNA) in the future?
- Wallet Investor estimates that Terra (LUNA) is still losing this week and will hit new highs before the end of the year. This AI (Artificial intelligence) -based cryptocurrency price predictor
- predicts that the price of LUNA for one year can touch 150,946 US dollars.
- PricePrediction.net forecasts LUNA prices to average 182 US dollars next year, and 265 US dollars in 2024.
- Coinpedia predicts LUNA’s trading value to be between US$131.93 and US$256.65 by the end of 2023.
- CryptoNewZ gives Terra (LUNA) predictions in 2023 at 78 US dollars and 85 US dollars per coin.
- Gov Capital provides a price prediction for Terra at $166.04 one year from now.
Of course, the price prediction for Terra (LUNA) 2022 above is not a guarantee. You have to determine a mature strategy by doing research using the right technical and fundamental analysis.