The cryptocurrency market is overflowing today, with more than thousands of altcoins and stablecoins being created every day. Terra is one such cryptocurrency that has been a star performer amongst the top-rated cryptos over the past few months. When Bitcoin and Ethereum experienced a period of consolidation earlier this year, the LUNA price saw parabolic growth. Let us see more about why Terra is going to explode in 2023.
Terra is a unique stablecoin designed to reduce the volatility ingrained in cryptocurrencies like Bitcoin. So let us take a deeper dig into the factors that drive Terra to be a potential cryptocurrency to buy now.
Looking At 2023: Is LUNA Set For A Massive Rally This Year?
With the advancements and upgrades on the Terra ecosystem, the price of LUNA would rise higher, hitting record heights.
The LUNA token showed significant growth in 2021, thanks to several initiatives and projects launched by Terraform Labs. This company intends to use Terra's blockchain and related cryptocurrencies to build a better digital financial system free of big banks and fintech app developers.
The crypto has launched numerous projects and tokens since its inception in late 2020. Each project is innovative in its own way and is considered an integral part of the larger Terra ecosystem. In addition, there are several other reasons why Terra is going to explode in 2023.
1. LUNA’s Tremendous Price Rally
In August, LUNA was trading at $5.80. But with the acceptance of Wrapped Luna & TerraUSD on Coinbase Pro, one of the top centralized crypto exchanges, on August 12, the token started climbing up. LUNA went up by almost 37% on August 17 alone. Further, the token continued its bullish rally, hitting an all-time high of $103 in December 2021.
LUNA is basically a reserve currency that runs on the Terra platform. It has three main functions.
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To retrieve transactions from Terra through staking
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To ensure the price stability of Terra stablecoins
- Offer incentives for the platform’s blockchain validators
2. Significant Features Of Terra
The primary goal of Terra is to offer price-stable cryptocurrencies that can be utilized for transactions and international payments. By leveraging blockchain technology, Terra’s stablecoins provide fast processing times and minimal fees. Its technology can be used to create stablecoins tied to any currency.
The blockchain is an entirely digital, decentralized financial corporation. Customers can seamlessly collect interest on their digital assets, spend it using the company’s payment system, and even trade-in synthesized stocks.
The LUNA token holders also have the option to stake their tokens in the Terra ecosystem. Whenever they stake LUNA, users pledge their tokens to the Terra network, and further, their tokens are used to validate transactions. Moreover, the rewards LUNA holders receive from staking will depend on the size of the stake.
A major challenge that most stablecoins face is maintaining the price where it is supposed to be. There could be a high level of fluctuations in prices, depending upon high and low demands. With the use of its LUNA coin, Terra blockchain tackles this issue. The LUNA tokens can be converted to Terra’s stablecoins and vice versa to increase or reduce the supply whenever required.
3. Use Of Stablecoins
Terra employs a configurable architecture to deliver self-stabilizing stablecoins. The network’s elastic monetary supply mechanism is what makes it a unique token compared to its competitors. The Terra platform offers a wide variety of stablecoin alternatives that promise instantaneous settlement and the price-stability algorithm allows it to change an asset’s monetary supply to sustain its value.
This novel mechanism is also helpful for its users as it provides them with cheaper fees, increased stability, smoother cross-border exchanges, and even more responsive financial assets.
4. Expert Predictions
Ripple Coin News:
“Terra Luna could reach a price of more than $135 by the end of 2023. They also predict that the price of Luna could reach $250 by the end of 2023.”
Coinpedia:
According to Coinpedia, “LUNA could smash through $160 per token by the end of the year 2023. However, should a bearish market take place, this token could trade around the $110 level.”
GOV Capital:
According to our Terra (LUNA) prediction, the token might trade around $157.77 by the end of 2023 and $641.78 by 2025.
Check Out: Why Terra (LUNA) Will Skyrocket
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Factors That Drive Terra To Explode In 2023
Terra has been one of the most successful cryptocurrencies over the past few months, making it a good buy now.
Several factors, including the growth of its Mirror and Anchor Protocol, have been a major driving force behind LUNA’s price in 2023.
Here are some of the contributing factors behind Terra’s claim to fame as one of the top cryptocurrencies to buy now.
1. Mike Novogratz's Support For Terra Coin On Twitter
Recently, the price of LUNA has seen a meteoric rise, doubling in just 4-days, thanks to the cryptocurrency titan Mike Novogratz and his latest endorsement for Terra on Twitter. Novogratz, in his tweet, stated that Terra is much more superior to Cardano.
He has been an ardent fan of the Terra protocol that utilizes LUNA coins to stabilize transactions pegged against several currencies. However, his latest mention of the crypto has boosted the rally of LUNA to new heights.
2. The Investment From Galaxy Digital Trading
Besides the endorsement via Twitter, Mike Novogratz, the CEO of Galaxy Digital Trading, has made a $25 million funding round for Terraform Labs. Following the funding, the price of LUNA has exploded over 30% higher.
Novogratz said, “What’s great about Terra is they are one of the first sandbox experiments that are getting outside the sandbox. We are always looking at those projects because they are the canaries in the coal mines of what else is going to happen. These guys are going to dominate payments in Southeast Asia.”
3. The Launch Loop Finance – A New AMM DEX
The launch of Loop Finance, a project designed on the Terra network, has helped Terra in gaining high popularity in the crypto market. The network shares the same goal as Terra. It aims to induce mass adoption of crypto in a highly user-friendly manner. This will further boost the price of LUNA to explode by 2023.
The team tweeted, “Loop is a Terraform Capital project offering a two-fold product - an AMM DEX and a non-custodial crypto wallet - to the Terra ecosystem and beyond, optimized for mass adoption.”
4. The Columbus-5 Upgrade
The recent price explosion of LUNA token can be accredited to the launch of the latest Columbus-5 upgrade. This will offer additional incentives for stakers in the Terra ecosystem and permit more applications to be created on the Terra network. Moreover, the burning of the LUNA transaction will further push demand and value higher. Therefore, new upgrades to the Terra network would continue to spike the price of LUNA to explode in 2023.
5. Offers A Variety Of Configurability Options For Programmers
The main agenda of the Terra platform is “Programmable Money for the Internet”. Due to this reason, the network is highly developer-oriented. Programmers can easily use the network to create smart contracts in Rust, Go, or AssemblyScript. Apart from this, users can use the network’s oracle to provide new functionality to their dApp. This will significantly boost the adoption of Terra blockchain, making this the right time to buy LUNA.
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Why Terra Is Going To Explode In 2023
Thanks to its active community and innovative blockchain platform Terra could be a good buy now for long-term investors.
The Terra platform has over 2.2 million active users. Moreover, the creation of StarTerra, the first unique gamified launchpad on the Terra blockchain, has increased its popularity among gamers. It is a launchpad where users can play and earn while using NFTs. Moreover, the CHAI payment app, built on Terra’s blockchain, has also gained massive popularity, boosting the price of LUNA to new highs.
The Terra platform is one of the biggest money-makers in the blockchain market today. Its goal is to make user’s lives easy and thus leaves a significant footprint on the technological and functional eco-space, making it a good buy now.
The Bottomline
Therefore, Terra is one of the biggest gainers today in the market. Cryptocurrency investors have been keenly watching the token over the past few months. Its fast adoption and significant network updates are of the many reasons why Terra is going to explode in 2023.
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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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