***The data on this article is not updated, Terra LUNA has lost over 99% of its value.
Terra is a Korean blockchain platform created by Terraform Labs that allows for the minting of stablecoins pegged to several fiat currencies, which in turn offers to bring stability to the market.
It is powered by its native cryptocurrency, LUNA.
People tend to have differing opinions when it comes to stablecoins, but there can be no denying that they offer a world of possibilities when it comes to yield farming and other DeFi applications. They have also proven hugely popular with investors in recent months.
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What makes Terra interesting is that it combines many of the key features of blockchain with the stability of fiat currencies to offer secure, cross border payments via its own eCommerce platform.
From an investment perspective, Terra presents a very tempting prospect. Some may speculate that stablecoins vulnerability to regulation makes them a risky long-term investment, but others believe projects like Tether and Binance USD have attracted enough investment into the cryptocurrency space to make them an indispensable part of the industry.
So what sort of trajectory is Terra likely to be on over the next 3 to 10 years? In the following Terra price prediction for 2025 and 2030, we’ll take a look at the token’s potential as a mid to long term investment and hear what other analysts are predicting for its future.
Investors Show Confidence In Terraform Labs
Terraform Labs is the Korean firm behind Terra Luna. The company was founded by Daniel Shin and Do Kwon - both of whom bring some pretty impressive credentials to the project, being the founder of four successful eCommerce companies and a former Microsoft processing expert respectively.
The expertise that Shin and Kwon bring to the table seems to have struck a chord with investors as in June 2021 it was announced that Terraform Labs had raised $150m from a consortium of major investors, including Galaxy Digital, Arrington XRP Capital, Pantera Capital and BlockTower Capital.
The investments were raised as part of the Terra Ecosystem Fund. The funds will be allocated to developing projects on the Terra platform, most of which are decentralised protocols and apps that seek to boost the application and mainstream appeal of Terra’s stable coins.
The funds will be spent over the next few years and for prospective developers, the TEF offers not only a pool of potential capital allocation but also connections to some of the industry’s biggest investors that will help to provide opportunities to create financial products and services on the Terra ecosystem.
So What Is Terra?
Terra is effectively a decentralised platform that seeks to utilise eCommerce as a lynchpin for building stablecoins and providing a complete digital finance ecosystem. For those who are unaware, a stablecoin is a cryptocurrency that is pegged to a fiat currency, such as the USD or JPY.
Terra's main objective is to disrupt traditional banking via the mass adoption of stablecoins and DeFi. Terra allows users to earn interest on stablecoins, pay for things with cryptocurrency, and effectively replace most financial services with one seamless DeFi protocol.
The project has proved its worth too, with the Terra-powered CHAI payments app already being used by some 25 million people in South Korea.
The mainnet went live in April 2019 and is powered by its native cryptocurrency, LUNA. On the surface, Terra is similar to many other smart networks, in that it allows for projects leveraging smart contracts to be built on its platform. However, what sets Terra apart is its UST stablecoin.
UST is an algorithmic stable coin - this means it is not backed by a reserve of actual currency but relies on stabilisation using the LUNA coin.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Where Does Luna Fit In?
LUNA itself is not a stablecoin itself. It is, however, a fundamental part of how the Terra ecosystem operates as it is used in the algorithm the platform uses to put the ‘stable’ in stablecoin. It does this via a sophisticated seigniorage model that keeps it close to its fiat currency peg and minimise volatility.
LUNA can be burnt to mint the Terra stablecoin, UST. Burning $1-worth of LUNA yields 1 UST and vice versa. This effectively binds the coins together when it comes to value, as holders can take advantage of any arbitrage that occurs.
For example, if the value of UST creeps up by 5% to $1.05, then holders can take advantage of this difference by exchanging their LUNA for UST, then selling that UST on the open market for 5% more LUNA than they originally exchanged. Alternatively, if the stablecoin drops by 5%, holders of UST can perform the reverse exchange.
This same mechanism applies to all stablecoins built on Terra and it is this exchange protocol that helps to keep the stablecoin prices stable and pegged to their respective fiat currencies.
In addition to its role as an exchange medium, Luna is also the governance token of the Terra blockchain, meaning holders get a say in the future direction of the project.
Looking At Terra’s Price History
It’s important to remember that LUNA is not the Terra project’s stablecoin and it is not pegged to the value of the US dollar, despite its role in stabilising the UST coin.
In fact, within its first few weeks of trading, LUNA was worth up to $3.31 and continued to trade above the $1-mark for much of 2019, before dipping to $0.82 in September. Things more or less trended downwards for most of 2020, with LUNA rarely scraping above $0.50 and actually dipping below $0.20 in June.
It was January 2021 when LUNA finally regained parity with the US dollar, but this was before the cryptocurrency market exploded and prices started to skyrocket across the board. In February, LUNA reached a high of $7.33 - representing growth of over 1100% on the beginning of the year.
However, the February upswing proved to be nothing more than a warm-up and in March 2021 the price of LUNA surged to $22 - what was then a record high. Things then cooled slightly in April, before May saw Terra drop significantly, bottoming out at around $4.18 before the month was out.
Things remained fairly lacklustre for LUNA throughout much of June and July, but August saw the start of the altcoin’s biggest bull to date. By the end of the month it had reached $31.11 and continued rising into December, eventually reaching an all-time high of $103.33.
At the time of writing, LUNA was holding out at a respectable $52.28 - up almost 5130% from the start of 2021.
How Much Potential Do Stablecoins Really Have?
Some cryptocurrency observers may have their reservations about stablecoins, but one thing that can’t be denied is just how popular they have begun - with more than $113 billion worth of coins having been issued as of August 2021.
Many economists have touted stablecoins as being capable of delivering on the true vision of Satoshi Nakamoto. That is, to provide a decentralised alternative to the traditional banking structure. For example, according to Christian Catalini, chief economist at Diem Networks and Jain Massari, partner in the Financial Institutions Group of Davis Polk & Wardwell:
“Stablecoins have the potential to play an important (if yet to be defined) role in the future 2
of global finance. They could even become a backbone for payments and financial services.”
The major concern for many investors is what regulation could be brought in and how it will affect the price of stablecoins, such as those hosted on Terra. However, writing in the Harvard Business Review, Catalini and Massari point out that the very fact that regulators are paying so much attention to stable coins is testament to their growing importance.
No one can predict the future - especially when it comes to cryptocurrency - but given their potential, it stands to reason that any diversified cryptocurrency portfolio should include at least one stablecoin project.
Read Also: Cryptocurrencies With The Most Potential
Terra (LUNA) Price Predictions For 2025
Whilst Terra certainly presents an interesting prospect, investors are ultimately more interested in what returns they can expect from an asset. Whilst Terra price predictions are by no means guaranteed, it's worth seeing what leading platforms see in LUNA’s future.
DigitalCoinPrice seems to have no doubt that Terra (LUNA) is poised for growth. It expects the Terra token to be worth upwards of $68.71 by 2022 and will then reach highs of $92.69 mid-way through 2023. By 2025, the platform sees Terra (LUNA) hitting the $125 mark.
WalletInvestor is another platform that’s optimistic about the Terra project’s future. According to its data, LUNA could reach a potential high of $170.92 by the end of 2022 and is expected to continue on an upward trajectory across 2023 and 2024. By 2025, WalletInvestor predicts that Terra (LUNA) could be worth up to $599.65.
Finally, the most optimistic Terra price prediction for 2025 has been put forward by Coinpedia. Following an analysis of existing price data, the platform believes that if conditions remain favourable, investors could see Terra (LUNA) hit $500 over the next five years. However, in the event of a market downturn, LUNA is more likely to be at around $350 by 2025.
How Much Will Terra be Worth in Five Years?
Based on Terra projections from CoinLiker, the LUNA coin price is expected to rise significantly in the coming years, trading at $136.38 in 2022, $701 in 2023 and $1,141 in December 2027.
According to the Terra price prediction offered by crypto Investors, Terra (LUNA) is set to rise to $198 by the end of 2022, $345 in 2022, to soar all the way to $765 by December 2027.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Looking Further Ahead: Terra Price Predictions For 2030
Looking further ahead can sometimes seem like something of a fools’ errand, given how quickly the industry changes, but Terra price predictions for 2030 can be useful in building an idea of what analysts are expecting from the project over the longer term.
For example, DigitalCoinPrice has forecast potential LUNA prices up until 2029 and believes that the Terra token can continue to build upon its gains made by 2025. According to its predictions, Terra could reach up to $280 in 2030.
Elsewhere, CoinPriceForecast has been rather more optimistic with its Terra price forecast. It believes that the Terra project will go from strength to strength in the coming years, with LUNA increasing in value by several thousand percent. Analysts for the site believe we could see Terra (LUNA) breaking $380 in 2030.
A cryptocurrency research firm by the name of Crypto Research Report is calling for Terra (LUNA) to reach $550 by 2025, and $1,120 by 2030.
Once again, these figures are highly speculative and it's probably fair to say that CoinPriceForecast’s prediction represents the best-case scenario.
Terra (luna) Price Predictions 2025-2030
The price of Terra is expected to rise from $237.24 at the beginning of 2025 to $263.93 at the end of 2030.
| Year | Mid-Year | Year-End |
|---|---|---|
| 2025 | $237.24 | $263.93 |
| 2026 | $251.36 | $273.98 |
| 2027 | $296.40 | $318.63 |
| 2028 | $340.69 | $311.76 |
| 2029 | $325.16 | $343.45 |
| 2030 | $361.63 | $379.71 |
Should you buy LUNA?
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Conclusion: Should You Invest In Terra Crypto?
Having looked into Terra, its basic remit and how it fits into the wider cryptocurrency space, it seems that the project certainly has the potential to be a solid investment over the next five or ten years - perhaps even beyond.
The reality is whether or not Terra will be a good investment remains to be seen. As mentioned above, the LUNA token has numerous advantages over other stablecoins.
Stablecoins have become big business, as we have seen, and they arguably have potential that other tokens do not - especially when it comes to bridging the gap between cryptocurrency and mainstream finance.
Whilst potential regulatory changes could certainly have a huge impact on the price of LUNA, it seems that many leading crypto analysts do not foresee any significantly negative impact in the coming years and are almost unanimously predicting Terra to go up in price year-by-year.
Of course, whether or not you choose to invest in Terra will depend largely on your goals. But we feel that the project is certainly a worthy addition to any forward-thinking cryptocurrency portfolio - particularly if you are yet to invest in a stablecoin project.
Where To Invest In Terra (LUNA) Cryptocurrency
If you are new to the Terra cryptocurrency market and are looking to start making investments, then the first step is to find yourself a reputable broker that can give you access to the market. We recommend eToro for most users, but particularly those with little prior experience, as it is an industry leading platform that’s easy to get to grips with.
Opening an account is very simple, you simply need to input a few details, such as name, address and a contact number, then provide a copy of your ID to validate the details. If all goes smoothly, you can be buying and selling cryptocurrency within minutes!
eToro – The Best Platform To Buy Terra
eToro have proven themselves trustworthy within the Crypto industry over many years – we recommend you try them out.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
FAQs
What is Terra?
Terra is a sophisticated blockchain that seeks to provide a platform for the creation of stable coins. It uses an advanced seigniorage mechanism that uses the platform’s native token LUNA to help minimise volatility with stablecoins hosted on the platform.
Are stablecoins a good investment?
Stablecoins have a huge amount of application in the world of cryptocurrency and also offer an appealing way into the market for many risk averse investors from the world of traditional finance. As such, any stablecoin project could prove a good investment in future.
How much will Terra be worth in 2025?
No one can say for sure how the cryptocurrency market will move over the next three to four years, but analysts appear to be optimistic when it comes to Terra Luna. Predictions even suggest that the token price of LUNA could be around $250 by 2025.
How can I make money on Terra?
There are a few ways to make money using the Terra platform, but the most accessible way is by simply acquiring a holding of its utility token, LUNA. You can then keep the token until it appreciates with time.
Is now a good time to invest in Terra?
This is always a tricky question to answer, as it depends on your investment goals and when and if you plan to exit the market. However, with many analysts predicting growth for LUNA, it might be worth starting to research the project as a potential investment opportunity.
What are Terra price predictions for 2030?
Generally, Terra (LUNA) is expected to be performing well in 2030, with estimates that it may have grown to anything between $400 and $600 per token!
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