- LUNA is the native token of the Terra ecosystem, a blockchain platform designed to make cryptocurrency more usable in the real-world by bringing Decentralized Finance (DeFi) to the public.
- LUNA is currently trading for $96 ($132 AUD) per token, and is up just over 5% year-to-date.
- LUNA has grown an incredible 86,000% from its all-time low of $0.12 ($0.17 AUD) in March 2020, making it one of the best performing tokens of the past two years.
- Experts are mostly bullish on the future of LUNA, with some analysts predicting a $900+ valuation in the coming years.
2022 hasn’t been a fantastic year for crypto investors, however holders of the LUNA token would be fairly pleased themselves as the crypto continues to provide market-beating performance. While the overall crypto market remains down 18.7% year-to-date LUNA has considerably outperformed the general market, currently up 5% year-to-date.
This may not seem all that impressive but considering that all other major cryptocurrencies are down anywhere between 15 and 40% — LUNA’s performance this year can be considered quite strong. As of today, LUNA is ranked as the 8th largest cryptocurrency by market cap and trades for $96 ($132 AUD) per token.
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What is Terra (LUNA)?
To keep it very simple, LUNA is the token that runs the Terra ecosystem, and powers the increasingly popular US dollar-pegged stablecoin: TerraUSD (UST) as well as a bunch of other different currency-denominated stablecoins.
Terra was originally founded in January 2018 by Korean founders Daniel Shin and Do Kwon. The two wanted to help drive the adoption of blockchain technology and cryptocurrency by focusing on real-world use cases that offered solid, long-term rewards for crypto users.
The Anchor Protocol, a decentralized finance application on the Terra blockchain, offers users a 19.5% interest rate on all TerraUSD deposits. This rate is considerably higher than any interest being offered by conventional banks, and is one of the most attractive elements of the Terra ecosystem.
Without getting too complicated, LUNA is considered to be attractive by crypto investors because it’s a deflationary asset, which means that the total number of available LUNA tokens is always decreasing.
This works in the following way: whenever someone “mints” new Terra-based stablecoins, they have to “burn” the dollar equivalent in LUNA tokens. So if more people choose to use UST and other Terra stablecoins, the value of LUNA will rise by default.
LUNA Short-Term Price Prediction (1 Month)
According to analysts from CoinDesk, LUNA looks set to grow over the coming month, and could reach a high of $120 ($166 AUD) in the next week. Because the Luna Foundation Guard (LFG) — a subsidiary company of Terra — has been purchasing large sums of Bitcoin (BTC) and Avalanche (AVAX) as reserves, sentiment towards LUNA is trending positive. This supports the bullish thesis for LUNA.
LUNA 1-Year Price Prediction (2022)
According to a mixture of automated and expert forecasting from GovCapital, LUNA looks set to reach the $120 ($166 AUD) mark by the beginning of this July. Their analysts expect LUNA’s lowest price by the end of the year to be $142 ($196 AUD), and expect that if everything goes well it could even reach the $165 ($229 AUD) mark.
The analysts at CoinQuora are also quite bullish on LUNA and predict that the token could reach a new all time high of $150 ($210 AUD) by the end of the year.
UNI 3-Year Price Prediction (2024)
Continuing the extremely bullish thesis, the analysts from CoinQuora predict that the price of LUNA will reach somewhere around $350 ($490 AUD) by the end of 2024.
On a slightly less bullish note, the automated technical analysis from WalletInvestor predicts that LUNA will only grow to approximately $200 ($280 AUD) per token by the end of 2024.
UNI 5-Year Price Prediction (2026)
Analysts at CoinQuora predict that as crypto continues on its adoption trend, the Terra ecosystem will grow alongside it leading the LUNA token to be worth an impressive $900 ($1262 AUD) by the end of 2026, a cool 900% increase from today’s price.
Analysis from WalletInvestor is less bullish, predicting that LUNA will end 2026 at $555 ($778 AUD).
GovCapital maintains its bullish outlook, claiming that LUNA will be worth a hefty $687 ($963 AUD) in roughly 5 years time.
When looking at all of the above forecasts, bear in mind that analysts’ and algorithm-based predictions can be wrong. These LUNA projections are based on fundamental and technical studies of past performance and unfortunately this doesn’t guarantee future results.
LUNA Price Prediction Conclusion
- LUNA token has an extremely solid & sustainable foundation for growth and strong performance in the wider crypto market. Because LUNA is a deflationary utility token with a host of real use cases, it is arguably one of the more growth-oriented crypto assets to invest in. As the native token of the Terra ecosystem, which is posing serious competition to competitors like Binance and Ethereum, LUNA is a strong contender for platform-based market dominance.
- Owing to its current status as the 8th largest cryptocurrency, flexing a substantial market cap of US$30 billion ($42 billion AUD), it is unlikely that you’ll ever 100X your money with LUNA.
- While LUNA may not ever “moon” from here, it has all the necessary fundamentals to grow sustainably into the future. Investors should keep a watchful eye on all updates regarding regulation of stablecoins, as the price of LUNA is particularly vulnerable to events that disrupt the performance of stablecoin related DeFi.