Terra Luna is a crypto project from the stable of Terraform Labs, a Singapore-based tech firm. The protocol aims to generate crypto adoption by creating a suite of algorithmic decentralised stablecoins needed for DeFi transactions. But, what makes Luna special? Is the digital asset still favourable? Why did it lose 99% of its value in May 2022?

This guide provides answers to these questions, details on the Luna price prediction and the likely growth trajectory for the stablecoin-focused protocol.

Update – The LUNA price continued to drop further – read our updated ‘Will LUNA recover’ post.

Terra Luna Price Prediction 2022

LUNA’s price has largely been dictated by the premier digital asset, Bitcoin. BTC and several altcoins lost a significant share of their market capitalisation in the beginning of the year. However, the value of these coins slightly improved, pushing the nascent industry’s total valuation back to the $2 trillion pegs.

Nonetheless, the bears have been on full show in the last week, causing several promising projects to shed more than 90% of their value. Terra Luna’s price has been one of the most impacted. The digital asset shed 97% of its $115 price peg in the past week. However, the crypto space is known for remarkable comebacks. Hence, these are Luna price predictions for the following timelines:

  • End of 2022 – Terraform Labs self-corrects its sinking ship and stablecoin (UST), regaining investor confidence. Luna crypto price prediction should see the digital asset trading at $50 or more.
  • End of 2023 – The crypto market continues to gain more adoption and decentralised finance (DeFi) picks up steam. Terra’s pivotal role in this ecosystem should see it hit a strong price peg of $200.
  • End of 2025 – The maturation of its suite of financial products should see Luna’s price prediction hit a whopping $500 in the next three years.

Terra Luna Price History

Terra Luna

The Terra Luna price has been at the bidding of the foremost digital asset, Bitcoin, much like other alternative currencies (altcoins) in the nascent industry. But the digital asset has seen explosive growth, nonetheless. Here are snapshots of the digital asset’s performance so far since launch.

For a start, the price of LUNA was set at $1.29 in late July 2019 with a tame performance all through much of the year. Changes occurred after a broader market consolidation which saw the utility token seek support at a $0.17 price peg.

LUNA saw its price skyrocket from then onwards, with the digital asset breaking into the limelight in the second half of 2021. Following a series of marginal gains in the first half of 2021, Luna surged by over 1,000% from $0.1 to $21.4. Slight corrections saw it dip to $5.95 in July 2021 before another round of rallies.

This time, the Terra blockchain was all out for a major announcement of its potential as the digital asset surged to a 52-week high of $99.72 in late December 2021.

This year has been a mixture of gains and losses, given the broader climate surrounding the digital asset’s ecosystem. Luna started 2022 on a slow footing as it shed 45% of its gains to $54 in mid-February. Market rallies saw the Luna token surge to an all-time high (ATH) of $119.18 on April 5.

terra luna

At press time, the Terra Luna price is facing a fight for survival following a series of poor market performances. The digital asset has lost more than 95% of its ATH value and trades below a dollar in current value.

Luna’s astronomical price drop is largely due to a combination of a broader market dip and the de-pegging of its UST stablecoin from the dollar. Terra’s stablecoin projects are intrinsically tied to the performance of LUNA. The stablecoin was designed to maintain its peg to the US dollars based on the burning or minting of the Luna asset. However, a series of recent large UST withdrawals led to the de-pegging of the stablecoin, while inversely impacting the Terra Luna price in an already bear market.

Terra ecosystem

While this may be disheartening to several investors, the project’s founders are currently working to re-peg the UST stablecoin to the dollar. This information was contained in a May 11 tweet by principal pioneer, Do Kwon. In his tweet, Kwon stated that there are a series of remedial measures the blockchain protocol would initiate to seize back control of the runaway stablecoin.

One of such is to initiate community proposal 1164, which intends to increase the base pool from 50 million to 100 million SDR. It would also decrease the PoolRecoveryBlock from 36 to 18. This decrease would significantly increase the minting capacity from $293 million to roughly $1.2 billion. Coupled with other expedient options, these should help reinstate the UST to its original $1 valuation.

Terra Luna Price Forecast 2022

Despite its current travails, Terra could still be viewed as a strong and promising project. For one, it is the only stablecoin-facing project in the crypto industry. This is quite crucial given investors’ clamour for a more temperate and less volatile digital exchange medium than pure-play crypto assets. While the current dip may not be soon forgotten, we do believe that the Luna price prediction is still slated for better days.

Here are a few monthly snapshots to herald its rallies:

  • June 2022 – With the remedial measures initiated, we should be seeing a change in market sentiment around the Luna crypto. This would naturally prop up the digital asset to close above the $0.5 price peg.
  • July 2022 – More uptrends are expected and a $1.5 Luna crypto price prediction is not unusual.
  • August 2022 – A slight correction may see the digital asset lose some grip but this should be a temporary upset. Our Luna coin price prediction should see the digital token close above the $1.9 price peg.
  • September 2022 – Continued bullish control would propel Luna to double its previous month’s position and shoot towards the $4 range.
  • October 2022 – Now out of the crypto woods, Luna would be gearing for a more aggressive push upwards. This would see it touch the $10 range. Better days ahead!
  • November 2022 – Terra Luna’s price prediction for November is still bullish, Luna price should be at $30.
  • December 2022 – Following the holiday season, Luna may slightly stunt its growth due to fewer trading activities during the stated period. A $10 push to $50 would be a great end to a dramatic year.

Terra Luna Price Prediction Long Term Outlook

The start of 2023 may see the Terra Luna price falter a bit but this is not expected to be a common sight. A breakaway from the bears would see Luna hit the runway once more to higher highs.

However, resistance may occur within the $60 price range as the bears fight back. This is certainly expected as the crypto market is known to be largely pegged to the price action of Bitcoin. The subsequent rally of BTC could influence LUNA, and we should see a comeback sooner rather than later.

Terra is much more than its stablecoin offering for other strong fundamentals as it has become a hotbed for both DeFi and non-fungible tokens (NFTs). Lower transaction costs and network scalability have potentially made Terra one of the top 10 most valuable DeFi protocols with $1.7 billion in total value locked (TVL), per data from DeFiLlama.

This could be beneficial in the future as Terra Luna’s price could cross the $100 price.

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

Terra Luna Price Chart

Update – The LUNA price continued to drop further – read our updated ‘Will LUNA recover’ post.

At press time, LUNA trades at $0.00990, down 99.% in the last 24 hours.

On the LUNA/BTC price chart, the digital asset is seeing strong bearish control. However, its moving average convergence and divergence (MACD) is gradually portraying the buy signal. The relative strength index (RSI) figure of 11.17 shows that LUNA is in the oversold region.

The digital asset’s technical analysis (TA) shows a stronger pull of the bears in the past few days.

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

Is Terra Luna the Best Crypto to Buy in 2022?

Terra broke into the spotlight with much flourish and its utility token, LUNA, has been a major beneficiary. The blockchain’s rapid growth and relevance have made investors wonder if it takes the top spot of the best crypto to buy in 2022. While we can’t disregard Terra’s huge potential, we also have another crypto project that ticks the box.

DeFi Coin is a community-driven fair launched crypto project that aims to extend blockchain and crypto adoption. The protocol is a new entrant in a hugely competitive landscape but has since become a viral sensation following its primary focus on educating investors on the benefits of DeFi.

The usual thought among investors is that all new projects are cash-and-grab in framework architecture, but this is not the case for DeFi Coin. The protocol is more focused on the long term, and this is reflected in its reward distribution system. All transactions or token sales of its DEFC are taxed at 10% with 50% of the total sum redistributed to current DEFC holders while the balance is provided as liquidity to its numerous pools. This is a viable way of earning interest in crypto.

DeFi Coin (DEFC) runs on three core pillars: reflection, manual burn strategy, and liquidity provider acquisition. These three methods are specifically geared toward generating as much income as possible for investors. DEFC is also expected to play a crucial role in its subsequent launch of digital collectables or NFTs.

Defi Price Chart - buy DEFC

DEFC may not command a lot of media attention, but savvy investors have been rapidly purchasing the crypto asset. Following its launch on the popular decentralised exchange (DEX) PancakeSwap and the deployment of its in-house swapping protocol, DeFi Swap, DEFC surged more than 300% and hit a current 52-week high of $0.56.

The digital asset currently trades at $0.32, down 18% in the last 24 hours. As one of the cryptos under $1, DEFC comes with enough room for potential growth.

Cryptoassets are a highly volatile unregulated investment product. 

How to Buy Defi Coin

If you want to invest in cryptocurrency for this year’s potential price breaker, follow these steps to get started:

1. Visit PancakeSwap

visit pancakeswap

Head over to the PancakeSwap to begin your trade.

2. Connect a Wallet

conect wallet on pancakeswap

PancakeSwap is a Web 3 trading platform; this means you need a non-custodial digital wallet to interact with it. To do this, tap on the ‘Connect Wallet’ icon and click the ‘Connect’ button. If you don’t have a crypto wallet, we recommend using Metamask.

3. Fund Wallet

The most prevalent digital asset on PancakeSwap is Binance Coin (BNB). However, you can easily buy DEFC with any other digital asset. You will need to fund your wallet, and you can buy a supported trading pair on a centralised exchange and transfer it to your wallet.

4. Buy DEFC

Select DEFI coin

Tap on the ‘From’ section, select the digital asset you want to trade with and choose ‘DEFC’ in the ‘To’ box. Set the slippage ratio and click on ‘Swap’ to complete the process.

Conclusion

Terra has had a few rough days but the crypto project is still a recognised player in the DeFi space. The project’s algorithmic stablecoins play a crucial role in onboarding users into the burgeoning space. However, our top pick for the best crypto to invest in 2022 is DeFi Coin.

DeFi Coin’s fundamentals are strong. The recent launch of the DeFi Swap V1 also reveals the team’s intent to become a major force in the DeFi space. In addition, DEFC token holders can easily generate passive income from transactions made on the platform. The digital asset is also scheduled to play a crucial role in the use of digital collectables on the platform.

Moreover, DEFC has remained an outlier in a mostly bearish market. The digital asset surged an astronomical 300% following its listing on PancakeSwap. With still more room to grow, DeFi Coin’s low price peg gives value-driven investors a unique opportunity to buy low and rise with the market.

Cryptoassets are a highly volatile unregulated investment product. 

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