Terra (LUNA) Cryptocurrency: Is It A Buy, Hold Or Sell Right Now?

Last Updated March 25th 2022
4 Min Read

Invest in the future of DeFi and NFTs by investing in Terra today. 

With thousands of cryptocurrencies on the market, it can be hard to pick between a promising project with long-term growth potential and quick cash grabs that will not survive a bear market.

Although Bitcoin is widely seen as a pioneer in the world of cryptocurrencies, analysts adopt many approaches for evaluating tokens other than BTC. Typically, altcoins are higher-risk investments when compared to Bitcoin, but they often provide higher returns in a bull market. Terra (LUNA) is one such altcoin that has grabbed the attention of the crypto community. 

Terra (LUNA) is a cryptocurrency and payment network created by Do Kwon and Daniel Shin, co-founders of Terraform Labs. The Terra blockchain supports a decentralized finance (DeFi) ecosystem in which price stabilization algorithms maintain price stability for its crypto token, LUNA. 

Terra gives users access to a large array of DeFi applications and has become one of the most popular projects in the crypto world. So is Terra (LUNA) a buy, hold or sell right now? Read on to find out. 

A Market-Beating Cryptocurrency — But For How Much Longer? 

Terra gained a lot of attention and expanded its user base significantly in no time. What next?

With over $18 billion in total value locked, Terra recently became the second-largest DeFi protocol behind Ethereum, according to data provider DeFi Llama. According to its white paper, Terra operates on a proof of stake model, where validators verify transactions according to how many coins they hold. 

Proof-of-stake supporters say it is significantly less energy-intensive than other models and has a less environmental impact. Luna’s holders are granted governance rights and voting power for the protocol since LUNA is Terra’s native token.

Currently, Terra offers stablecoins pegged to the US dollar, Mongolian tugrik, South Korean won, and the International Monetary Fund’s Special Drawing Rights basket of currencies. Terra uses an algorithm to maintain a one-to-one peg, automatically adjusting the stablecoin supply based on demand. 

Terra was built using Cosmos blockchain technology and is designed to disrupt traditional retail payment apps. It is disruptive because it is an end-to-end payment solution versus the traditional fragmented payment infrastructure. Because of this, Terra could potentially save payment service providers hundreds of millions of dollars per year. 

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

The Road Ahead For Terra (LUNA) 

A few aspects of Terra’s work are currently making headlines and keeping watchful eyes watching. 

Advanced Network Infrastructure 

Terra (LUNA) brings a lot of benefits to the market. Its decentralized and permissionless nature makes it ideal for the digital economy. The network offers competitive programmable payments, logistics, and an infrastructure designed to simplify Dapp and stablecoin development. 

The network is designed to run on multiple chains connected by the Cosmos IBC. Currently, Terra is live on Ethereum and Solana. Developers have announced plans to expand their protocol to include other top-performing blockchains in the near future.  

Massive Adoption 

There are nearly 3.5 million unique Terra wallet addresses, compared to about 900,000 at the beginning of 2020. That works out to nearly 400% user growth in two years. 

Terra has gained a lot of traction in this time frame. Many people are already using Terra and the stablecoins in its ecosystem every day. For example, Chai, a South Korean wallet app founded by Terra co-founder Do Kwon, has over 2.5 million users. These customers and merchants are already using UST for payments at over 50 e-commerce outlets and even some offline locations in South Korea. 

Astroport, a decentralized exchange built on Terra, is only a few months old but has already worked its way to become the second-largest decentralized exchange in terms of daily volume. 

Surging Stablecoin Demand 

The Terra ecosystem features an array of stablecoins -- most prominently TerraUSD and stablecoins based on the South Korean won and the Mongolian tugrik. Interest in stablecoins is growing for a variety of reasons, ranging from rising geopolitical risks around the world to the increasing ease of using them for payments. 

TerraUSD had a market cap of just under $1 billion last March (currently, it is over $30 billion), indicating a high demand for the product. As a go-to destination for stablecoins worldwide, Terra and the LUNA token will be key beneficiaries of this trend.  

Is Terra (LUNA) A Buy?

Terra crypto is currently a buy. Terra coin recently reclaimed its 50-day line for the first time since mid December. That's a positive. After a lengthy consolidation Terra price has formed a cup pattern, with a buy point of $80.

Terra has risen a lot over the past year and even passed tokens like ADA and SOL (by market cap). But even after this impressive run, Terra could just be getting started. User growth is soaring, demand for Terra's stablecoins is growing, protocols like Mirror and new applications like the Derby Stars NFT coming on board show that Terra's uses will expand from here. 

Terra is coming into its own as a full-fledged financial ecosystem and is worthy of long-term investment because it could be on the precipice of becoming a global financial powerhouse. 

Read Also: Terra (LUNA) Price Prediction

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Consider buying LUNA to become a part of the growing Terra ecosystem.

Terra’s self-adjusting monetary supply mechanisms are unique to the industry. As such, the project reflects the pioneering spirit of the decentralized sector. Today, Terra is popular amongst traders, and the network continues to see expanding usage globally. 

You can expect to hear more about this unique project as developers expand the number of blockchains the protocol operates on in the coming months.

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

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