This week, Terra is up 53%, one of the best-performing large-cap tokens in the market.
Terra (CRYPTO:LUNA) is a token that has gained a lot of attention recently as a leader in algorithmic stablecoin development.
The LUNA stablecoin is part of a system that uses an algorithmic balancing system to ensure parity with fiat currencies. In October, the network upgraded to Columbus-5, which introduced a new design for maintaining stablecoins pegged to their fiat value: whenever UST is minted, LUNA with the same value is burned.
Meme token Shiba Inu (CRYPTO:SHIB), on the other hand, is down again today. This token’s daily decline of 6.8% as of 10:45 a.m. ET brings Shiba Inu’s market capitalization down to $23.6 billion, one spot lower in the market capitalization rankings than Terra. This decline also wipes out most of this week’s gains for the dog-inspired token.
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What is Terra Luna?
Terra Luna has seen a number of catalysts take hold this week, resulting in this outperformance. Terra seeks to alleviate many problems currently faced by the world’s top stablecoins. The cryptocurrency reduces market centralization. Terra’s protocol works across multiple blockchains, unlike the competition. Additionally, the network aims to remove technical limitations on these assets through its open financial infrastructure.
On Tuesday, we learned that Terra investors had voted for an important proposal that would allow for community funding of an overhaul of the network’s TrackTerra tax and reporting app. This overhaul would enable holders of LUNA to export their transactions to various tax software programs. This appears to be a positive, given the various reporting requirements the U.S. government is looking to impose on the crypto sector.
This proposal is one of many put forward by Terra to improve its status as a robust global stablecoin ecosystem. Other proposals, such as proposal 143, a move to add liquidity and widespread adoption of LUNA across major blockchain networks, are gaining ground.
What’s on the Horizon?
Terra is a stablecoin ecosystem with a large and growing user base. Investors appear to like the direction Terra’s developers are headed. Investors who are concerned about an increasingly hawkish regulatory environment should find these tax and liquidity updates to be encouraging.
Additionally, reports that stablecoin trading volumes made up approximately 77% of the crypto market’s 24-hour volume suggests this is a sizable market investors have their eye on right now. Terra’s positioning as a key player in the stablecoin space is a catalyst that appears to suggest this token could continue to rise in value relative to other cryptocurrencies, at least in the near term.
2021 Luna Price Prediction;
Terra’s bullish rally began on the first day of the year 2021, indicating it could be in for a very promising year. Terra resumed its run in January with a trading value of $0.6494. Since then, the coin has dramatically accelerated. Since the launch of the Anchor protocol, the coin’s price has exceeded $21 by the middle of March. The coin’s price dropped to $13 as bears took over the market in April.
In the month of May, as a result of the market collapse, Terra prices slumped down by 70% causing cryptocurrency to tank as low as $4. Then the price hovered around $6 till the month of July. Terra registered new all-time highs at $33.12 on August 19 amid increasing bullish sentiment and powered partly by a boosted supply of UST and Terra network upgrade.
Luna coin Price Q4: The LUNA price has seen exponential growth post the commencement of Q4. It has successfully generated consequent higher lows with incredible gains over the past three months. However, the price has managed to undergo subsequent retests at $27.5, $35.6, and $41.69 respectively. A sharp break out at $40.05 has skyrocketed the price to a new ATH of $60.07 on December 1st, 2021.
LUNA is expected to continue this bullish trend throughout this year. Based on its growth pattern and predictions, Terra (LUNA) price could smash $75 by the end of 2021. Despite the expected market fluctuations, the coin’s price will end on a positive note. The average and minimum possibilities is being $64.87 and $44.16