Can the Terra (LUNA) coin reach the $100 mark at the end of 2022?
It seems possible for Terra LUNA coin to hit the $100 price by 2022. There is every reason to believe that Terra (LUNA) crypto will reach $100. Besides the fact that Terra (LUNA) has tested $100 in the past, the fundamentals favor testing much higher prices in the short to medium term.
Below are some of the reasons Terra (LUNA) crypto will reach $100 and probably do several multiples of this price.
Stablecoins Are Taking A Bigger Share Of The Crypto Market
While the crypto market as a whole has experienced tremendous growth over the last couple of years, stable coins have gained the most in terms of adoption. The largest stable coin (USDT) constantly ranks as the 3rd largest cryptocurrency by market cap.
However, algorithmic stable coins have gained the most demand since 2021. This has a lot to do with the way they are structured. Unlike a stable coin like Tether that requires actual fiat to match the stable coins in circulation, algorithmic stable coins are kept at a specific price range by an algorithm.
If the price increases, more stable coins are minted, hence lowering the price back to the pre-determined price. On the other hand, if the price drops, the algorithm burns some of the tokens, hence driving up the price.
In the Terra ecosystem, the entire process uses LUNA tokens. That’s because it is the cryptocurrency that collateralizes all the stable coins that run in the Terra ecosystem. For context, if the demand for TerraUSD rises, the Terra algorithm issues new LUNA to stabilize the price. On the other hand, when demand for TerraUSD drops, the Terra algorithm buys back and burns the excess LUNA tokens to get rid of the excess supply.
The entire mechanism is set up so that as more people use Terra stable coins, the demand for LUNA tokens goes up. Now, with DeFi and stable coins rising for lending and other purposes, the demand for LUNA will go up. This is a factor that could see LUNA retest the $100 mark and easily make new highs of $500 or more. Essentially, when you consider the use case, $100 per LUNA token is a pretty low target.
Check Out: Is Terra (LUNA) A Good Investment?
It Is Still Early Days For The Terra Ecosystem
Despite its massive price rally in 2021, Terra is still a young cryptocurrency, and most of the cryptos building on top of it are still in their early days. Currently, Terra has about 100 projects running on top of it, and most of them have a lot of potential going into the future. That’s because they are targeted at high-growth areas of the crypto market.
The majority of them are stable coins, payment Dapps, investment Dapps, bridges, and mirror finance among many others. Essentially, Terra has positioned itself right in the middle of the Web 3.0 revolution that is gradually taking root.
As the demand for the products in the Terra ecosystem grows, the value of LUNA, which fuels the entire ecosystem, will grow up. This is a factor that will push LUNA to $100 and much higher prices in short to medium term.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Terra Has Credible Backers
You can tell the quality of a cryptocurrency by the people backing it and its developer team. The better the quality of the team supporting it, the higher the odds of success in the long run. On this front, Terra (LUNA) is one of the best cryptocurrencies.
During its private launch in 2018, Terra attracted several high-profile names. Some of the big players that took part in its private launch include OKEx, Binance Labs, Dunamu & Partners, and Huobi Capital. Since then, Terra has attracted a lot of high-profile partners that include Voyager Capital and Carousell. Currently, Terra has billions of assets locked in its various protocols.
With its high-profile backers, Terra has an element of trustworthiness in it. This is likely to see it keep drawing in even more Dapps developers and corporations looking to adopt algorithmic stable coins for various purposes.
As this demand grows, it will reflect in the value of LUNA. This makes $100 per LUNA token attainable within a very short time.
Don't Miss: Terra Price Predictions
The LUNA Token Has Multiple Uses
Before investing in a cryptocurrency, it is always best to consider the use of the native token. There are cryptocurrencies that have awesome use cases but very little to no use case for the native token. It is very easy for the price to stagnate in such a case. That’s not the case with LUNA.
While its biggest use case is stabilizing the algorithmic stable coins running on the Terra blockchain, LUNA is also used to reward network validators and can also be staked. These multiple uses have led to a massive increase in LUNA demand over the past year.
Now that many more people know about the uses of LUNA for various uses in the Terra ecosystem, demand is likely to grow. This places LUNA in a unique place for growth and could easily trade at over $100 in the short term.
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.
Read More:
What Is Terra? Should You Invest In LUNA And Where To Buy It?
Terra (LUNA) Price Prediction For 2025 And 2030
Could Terra (LUNA) Be A Millionaire-Maker Coin