Terra Luna vs Shiba Inu: Which Crypto Should You Buy In 2022

SHIB vs LUNA: Which One Should Be In Your Portfolio?

Last Updated March 24th 2022
17 Min Read

Terra Luna and Shiba Inu are two very different cryptocurrencies - the former being an ambitious attempt to disrupt the world of international finance, the other falling into the subcategory of tokens known as meme coins. But as investors hunt for the best opportunities heading into 2022, both of these tokens seem to be on the table. So which is the better pick?

Terra Luna is an intriguing project that leverages stablecoins to offer a complete financial ecosystem. Users can easily pay for purchases or transfer funds into stablecoins pegged to other currencies, which effectively makes it a cross-border payment alternative. On the other hand, Shiba Inu may have started life as a Dogecoin clone, but the project has since expanded to offer additional tokens, a proprietary DeX and even an artist incubator program. 

Whilst many mainstream investors may be dismissive of meme coins, the reality is that SHIB has the potential to make significant gains in 2022, just a Terra Luna has. For example, if uptake of Terra Luna continues apace, then it stands to reason that its native token will become more sought after. Similarly, if the developers behind the Shiba Inu project continue to innovate, then it too could increase in value. 

To help you build an idea of how these two very different projects stand as investment opportunities, we have put together the following Terra vs Shiba comparison, in which we’ll take a closer look at each project as well as hear from top analysts on their expectations for each tokens’ prospective price movement in 2022. 

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Shiba Inu vs Terra Luna - An Overview

Terra Luna vs Shiba Inu image

Both SHIBA and LUNA have a lot of potential, but it’s probably fair to say that Terra Luna has the better real-world use case at this stage. That being said, Shiba Inu has proven itself to be a highly popular cryptocurrency and meme coins have demonstrated the ability to make substantial gains in a relatively short space of time. 

But before we take a look at price predictions for Shiba Inu and Terra Luna, it’s important to understand the fundamental differences between these two projects. 

Terra Luna


Terra Luna was created by Terraform Labs - a Korean firm set up by Daniel Shin and Do Kwon in 2018. The cryptocurrency project itself went live in 2019 and has enjoyed significant backing from investors including Galaxy Digital, Arrington XRP Capital, Pantera Capital and BlockTower Capital.

The idea behind Terra Luna was to build a cross-border financial ecosystem that allowed for the mining of stablecoins, pegged to a national currency. Not only would this - in theory - provide a less volatile environment for those wishing to pay for goods in cryptocurrency, it also serves as an alternative to comparatively costly currency exchange services. 

Currently, most Terra users are to be found in Asia, with Korea remaining its biggest market. There are several e-commerce platforms across the region that now accept payment in LUNA. However, the Terra ecosystem also supports numerous dApps across DeFi, NFTs and Web3.

Token fundamentals

Given its central function of minting stablecoins, it should be fairly obvious that there are several tokens associated with the Terra platform. The first stablecoin on the network was TerraKRW (KRT), a stablecoin pegged to the South Korean won. There then followed include TerraUSD, pegged to the US dollar, TerraJPY, TerraCNY, TerraEUR, TerraGBP and TerraSDR.

However, the token that underpins the entire protocol is Terra LUNA. LUNA is the native token of Terra and has several use cases. First and foremost, it is used as the collateralising mechanism for all Terra stable coins - which are algorithmic, rather than linked to reserves of fiat currency. 

The inner workings of the platform are too complex to be broken down here, but the name tells us all we need to know. Terra Luna is derived from the latin ‘earth’ and ‘moon’ and this symbolises the relationship between the project and its native token - the earth and the moon providing gravitational stability for one another. 

In addition to providing stability, LUNA is also used in the Terra staking protocol, wherein holders can stake their tokens to earn rewards. Finally, it is also the governance token of the project so holders of LUNA can vote on proposals relating to the project and its future. 

Supply and Demand

The supply of LUNA has to be tightly controlled in order for it to maintain the stability of stablecoins on the Terra blockchain and perform the collateralising mechanism. The token has a dynamic supply of 1 billion coins. New coins can be minted or burned to meet with the collateralisation requirements.

Luna is burned to mint new stablecoins and vice versa and this is how algorithm-based stablecoins work - through arbitrage. For example, if demand for UST stalls, causing a price drop to, say $0.9, then an arbitrager can buy UST at this price, mint $1 worth of LUNA by burning 1 UST, then sell that LUNA token for $1 - making a profit of $0.10. The same process happens in reverse if the trading volume of UST increases.

Put simply, if UST decreases in value against the USD, then the stablecoin is automatically burned off for LUNA, thus increasing its scarcity and bringing its value back into line. On the other hand, if it increases in price, then more LUNA is burnt off to create UST to meet demand and thus, in theory, keeping the price of both tokens in line. 

Check Out: Could Terra (LUNA) Be A Millionaire-Maker Coin

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Shiba Inu


Shiba Inu was initially launched as a rival to Dogecoin and, much like its predecessor, it has since been labelled a meme-coin - a subgenre of tokens that are generally a much more lighthearted take on the idea of cryptocurrency. At least, in theory. 

In actual fact, the developers behind Shiba Inu have made some pretty solid innovations and it seems that the project is likely to continue its evolution into a fully fledged DeFi platform. The SHIB token is an ERC-20 token, built on top of the Ethereum blockchain. In addition to the token, there is also the Shiba Inu exchange, which is compatible with several other Ethereum-based tokens. 

The platform has also launched the BONE and LEASH tokens, to facilitate yield farming and other DeFi applications. The continued expansion of the Shiba Inu brand shows that it is more than just another meme coin and could ultimately help it to outlast Dogecoin and other similar tokens. 

Token fundamentals

As we’ve noted SHIB is an Ethereum-based token, which means its transaction performance is in-line with the blockchain’s current benchmark of around 13 transactions per second. Of course, this could be set to increase significantly once the Ethereum 2.0 upgrades are fully up and running. 

The Shiba token is what drives many of the operations on the wider Shiba Inu platform and can be used to pay fees etc. However, its primary use case remains that of a digital alternative to cash. Whilst it might not be widely supported, SHIB is listed on Shopping.io - a digital payment platform that allows holders of the cryptocurrency to shop with Amazon, eBay and Walmart. 

Supply and Demand

Shiba Inu has a supply cap of 1 quadrillion tokens. However, shortly after its launch, the team behind SHIB gave a large proportion of this number to Ethereum founder Vitalik Buterin - who in turn donated a chunk of it to charity. It was also reported that a large proportion of this initial supply was then burned.  At the time of writing, the circulating supply of Shiba Inu was around 550 trillion. 

Most of the demand for SHIB comes from its loyal followers, often referred to as the Shib Army, as per the token’s subReddit. This is an important feature of meme coins, as their price is often driven by campaigns originating within the community. Potential investors are therefore advised to keep track of the various social media feeds, such as Facebook and Reddit. 

Don't Miss: Should You Buy Shiba Inu? 5 Pros, 5 Cons

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Shiba Inu vs Terra Luna: Which Is The Better Investment?

Weighing up Shiba Inu vs Terra Luna is tricky, as each project has its own strengths and weaknesses. Many investors will no doubt decide that Terra Luna has the stronger real-world use case and is arguably a more sophisticated and viable digital payment platform. However, meme coins have become famous for their ability to undergo sudden and significant price increases. 

To try and gauge which of these tokens presents the better investment opportunity, we need to consider several things - in particular, we need to look at each token’s price history, as well as what analysts are predicting for their respective futures. 

Terra Luna vs Shiba Inu: Price History

Before moving ahead with the price predictions for Terra Luna and Shiba Inu, it’s first worth taking a look back at their previous price movement. This can reveal how each token responds to certain market forces, as well as how their price moves in line with Bitcoin’s and the wider cryptocurrency market. 

Terra (LUNA)

Whilst LUNA is an essential part of maintaining Terra’s stablecoins, it should be remembered that it isn’t a stablecoin itself and its impressive price runs of recent months should illustrate this. 

When it first launched in 2019, LUNA quickly surged to $3.31 and held out above the $1-mark for several weeks. However, in September it dropped to $0.82 before continuing to slump across 2020, spending much of the first half of the year below $0.50 and even dropping below $0.20 on several occasions.  

As soon as 2021 arrived, LUNA’s fortunes changed and within a few days it had regained the $1-mark. However, this was nothing compared with what was to follow. In February, the altcoin had surged by some 1100% on the start of the year, hitting a month high of $7.33. March then saw further price rises, with LUNA reaching $22 before the month was out.

LUNA then dropped back to just $4.18 and didn’t see much upswing over the early months of summer. However, in August things changed again and LUNE reached $31.11 that month, before surging again in September, reaching a high of $43.82. In December LUNA grew almost three time this value and reached its new all-time high of $103.33.

At the time of writing, LUNA was at $94. 

Shiba Inu (SHIB)

Shiba Inu is a relatively new project, having only launched in August of 2020. It was also intended to maintain a very low token price, so when we talk about SHIB price history we are dealing with very small numbers, the token having launched at <$0.00000001 to initiate buyer interest.

Initially, Shiba Inu failed to gain a foothold. It seemed that the market wasn't primed for memecoins and whilst its token price did fluctuate, there was nothing to suggest the project would end up being successful. However, Dogecoins now infamous price explosion in early 2021 changed things and in April Shiba Inu surged from  $0.0000001 to $0.0000036, then continued to  $0.0000379 before May was out - again, not huge numbers, but this represented growth of tens of thousands of percent. 

Summer 2021 was a quiter time for the cryptocurrency market in general, but October saw SHIB surge from $0.0000071 to $0.000027 in just one week. Then came October - a month which saw SHIB reach its all-time high of $0.00008845. Once again, this represented astounding growth on its price year-on-year. 

At the time of writing, SHIB was trading at $0.0000248.

Terra (LUNA) vs Shiba Inu (SHIB): Future Predictions

Judging by each token’s track record, both Terra Luna and Shiba Inu are more than capable of delivering significant returns for investors. But what can we expect from each project moving forward? To shed some light on the possibilities, it’s worth checking out some price predictions from reputable market analysts. 

Terra (LUNA)

It’s probably fair to say that Terra Luna was something of a surprise standout in 2021, with its price suddenly surging to a record high in the final days of the year. As such, many analysts are still tentative about their LUNA price predictions for 2022 and beyond. 

Starting with DigitalCoinPrice, it appears that LUNA will experience changing fortunes across 2022, potentially rising to $137.87 in July but ultimately closing December at a trading price of $124.99. However, things are then predicted to pick up going into 2023, with LUNA potentially climbing to $160

Meanwhile, WalletInvestor foresees a much steadier upwards trend for LUNA in 2022. Its figures suggest that the token will reach an average trading price of $110 in July. Growth is then expected to continue across the year and the token is predicted to have reached an average trading price of $164. 

Finally, Coinpedia has also been cautious with its Terra Luna price prediction for 2022. It’s technical analysis suggests that the altcoin is likely to reach an average trading price of least $115.65 across the coming 12 months, but its best-case scenario has LUNA at $175.63. The platform’s average estimate stands at $138.7.

Read Also: Terra Price Prediction

Shiba Inu (SHIB)

Shiba Inu was another surprise performer of 2021 and many analysts believe that the project’s continued expansion will see its price creep up over the coming year. That being said, meme coins are notoriously unpredictable, so the following forecasts should be approached with caution. 

DigitalCoinPrice has come out with the bold prediction that SHIB could increase in value, reaching an average trading price of $0.0000345 by December 2022. Of course, some volatility is expected throughout the year, but when 2023 arrives SHIB is expected to continue growing, reaching $0.0000403. 

WalletInvestor is also predicting good things for SHIB over the next 12 months. Once again, periods of volatility are expected, but SHIB is expected to be up by around 109% by the end of 2022. It is then expected to continue on an upward trajectory across 2023, potentially reaching a trading price averaging $0.0000734.

Finally, TradingBeasts foresees a much steadier 2022 ahead for SHIB. It has the token gaining 34.7% in August and September (giving it an average trading price of $0.0000321), but the platform expects SHIB to finish the year around $0.0000318. 

Check Out: Shiba Inu Price Predictions

Shiba Inu Vs Terra Luna: What the Experts Say

Expert opinions aren’t quite as valuable as data-driven price predictions, but they are worth checking out to see how particular projects are viewed by the wider industry. Support from major business figures can also serve to drive the price of a token higher, as we’ve seen with Bitcoin/Dogecoin and Elon Musk. 

Shiba Inu’s subReddit currently has  some over 458 thousand subscribers - which is fairly remarkable given its relatively short existence. Fans of the platform note that Shiba Inu is open about its meme coin credentials. “SHIB coin is a meme coin and embraces that,” says head of research and strategy at cryptocurrency exchange AAX, Ben Casin. He added that “the hype around meme coins such as Shiba… is not a financial, but a social phenomenon” in reference to the token’s Reddit-driven price surge earlier in 2021. 

Meanwhile, Terra Luna’s ‘absolutely spectacular run” has well and truly put it on the map, according to Matt Hougan, chief investment officer at Bitwise Asset Management. Hougan also points out that “It’s been largely impervious to the recent market volatility, falling less and recovering faster than its peers.”

He went on to point out that “the bigger risk” with Luna is if Terra’s stablecoins are unable to hold their pegs. Luna acts as part of the mechanism for Terra’s stablecoins, so poor performance from Terra’s stablecoins could be reflected in LUNA’s price performance.

Coin Bearau’s Guy the Crypto Guy has also been positive about LUNA, noting its positive price action, which he says has been being driven by demand for stablecoins on the platform and a recent protocol upgrade.

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Shiba Inu vs Terra Luna: Conclusion

So we’ve reached the end of our Shiba Inu vs Terra Luna comparison. On paper, Terra Luna would appear to be the stronger project overall - especially when it comes to having a real-world use case. However, both tokens have demonstrated their ability to undergo significant price rallies - and both came from relative obscurity to nudging their way into the top ten cryptocurrencies in 2021. 

As a self-confessed meme coin, it’s probably fair to say that Shiba Inu presents the riskier investment. Its price will largely be determined by the proactiveness of the various online communities. However, the platform’s innovations and quirky branding have so far proved a hit with younger crypto-enthusiasts. 

If we look at the price forecasts for SHIB and LUNA, then we see a similar story for both. Most platforms are predicting growth of anywhere between 30% and 50% for the coming years, but it's also true that most foresee some fairly significant volatility on the horizon. 

So which is the better investment? This one could come down to your personal opinion and investment strategy. Whilst community price runs can be remarkable, they are never guaranteed and Shiba Inu has yet to establish itself as a viable form of digital payment in the same way that Terra Luna has managed to do. 

Of course, if you’re prepared to take on a little risk, then there’s no reason that you can’t add both tokens to your portfolio - especially if you already hold lower-risk tokens like Ethereum or Bitcoin. 

How To Invest In LUNA & SHIB Coins In 2022

If you are new to cryptocurrency investment then before you can buy and sell tokens, you’ll need to open an account with a broker or exchange that can give you access to the market. We usually recommend eToro, as the platform is advanced enough for most users whilst remaining approachable for those new to the market.

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Are meme coins a good investment?

Meme coins have really come into their own in the last year or so - particularly after the spectacular rise of both Dogecoin and Shiba Inu. Whilst many investors remain wary of this subgenre of token, there’s no denying that they can potentially offer significant returns for those willing to accept the risk. 

Can Terra Luna double my money in 2022?

LUNA appears to be poised for growth in 2022, at least if analysts predictions are anything to go by. That being said, many are also predicting significant volatility in the months ahead, so it would be foolhardy to assume that Terra Luna will double your money in 2022. Such growth is likely to take a year or two longer - if it happens at all. 

Where can I buy Shiba Inu?

Shiba Inu became one of the most talked about coins in 2021, thanks to a spate of intertest in meme coins. If you’re looking to invest in SHIB in 2022, then the good news is that you’ll find it listed on one of the top brokerage platforms: eToro.

What is Terra Luna?

Terra Luna is a complete DeFi platform that leverages stablecoins to provide a genuinely viable alternative to fiat currency. Users on the network can exchange currencies and pay for goods and services the world over without the need for a costly exchange or middle man, as is the case with fiat currency.

What is a Stablecoin?

A stablecoin is a type of cryptocurrency that is linked to a fiat currency, the idea being this will keep its price stable. Some stablecoins are backed by actual fiat currency reserves, as is the case with Tether, whilst other tokens, such as those found on the Terra Luna platform, maintain their price via algorithms that use another cryptocurrency as collateral.

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