What is Terra?
Terra is a blockchain protocol that aims for price-stability and growth by combining and utilizing different aspects of fiat-pegged stablecoins and cryptocurrencies. It uses an elastic monetary policy to solve stability problems (which is enabled by mining incentives), and efficient fiscal policies and incentives to drive adoption.
Terra believes that there is a demand for a decentralized, price-stable money protocol in both fiat and blockchain economies; and that if such a protocol succeeds, then it will have a significant impact as the best use case for cryptocurrencies.
It is home to its own stablecoin UST (TerraUSD), which is planned to be interoperable with every major blockchain, starting with Ethereum and Solana. It is an algorithmic stablecoin designed for scalability and is yield-bearing through Anchor Protocol; offering saving experiences that they claim rivals traditional savings.
LUNA is the native token of the platform, and is the topic of discussion for this article; specifically its price direction for the near and distant future. It has a couple of interesting use cases that will be covered in some detail, as well as its tokenomics, team and more.
LUNA Price Prediction 2021
Below we take a look at LUNA and examine some details and predictions to estimate a reasonable price for 2021, as well as for the upcoming years. It should be noted that while price predictions are based on data, and often are analyzed by AI, they should never be taken as financial advice nor be used as a solid basis for an investment, and neither should this article. It is always highly recommended users do their own research into the projects whose tokens they wish to invest in.
The whole crypto market is currently on the verge of a real bull run. There is no broader consensus as crypto analysts are divided as some of them are still calling this market a bull trap. Others, lead by famous on-chain experts like Will Clemente and Willy Woo, are calling this a preparation stage for a face-melting bull run. As always, bitcoin has the final say and altcoins will follow suit once the flag bearer decides the direction. Right now, Bitcoin is sucking the life out of altcoins but once it settles in the new price range, altcoins will start to pump – we have witnessed this scenario dozens of times in the distanced and more recent history. Our price prediction model is bullish for the next 90 days with a hint of a bear market at the turn of the year. We expect whales and other bigger players in the market to take their profits around that time which will cause a typical and sudden crypto crash. CaptainAltcoin team created a price prediction model with a multi-faceted approach to crypto that takes into account both technical analysis and fundamental assessment of each project. Fundamentals that we evaluate are team, tokenomics, use case, community, marketing efforts, liquidity and exchange availability, hype & speculative potential and some other proprietary factors developed in our crypto lab.
Below is a tabular overview of how will LUNA develop in the short-term (for the next 90 days), according to our prediction model:
+9.93 % $ 44.746
+3.31 % $ 42.052
+4.65 % $ 42.595
+16.88 % $ 47.574
+12.79 % $ 45.912
+17.82 % $ 47.957
+24.49 % $ 50.673
+20.11 % $ 48.891
+24.73 % $ 50.772
+24.22 % $ 50.564
+30.47 % $ 53.107
+32.89 % $ 54.090
+38.22 % $ 56.263
+34.77 % $ 54.856
+40.10 % $ 57.028
+45.62 % $ 59.274
+44.54 % $ 58.835
+51.12 % $ 61.512
+48.61 % $ 60.491
+52.56 % $ 62.098
+52.12 % $ 61.917
+53.55 % $ 62.499
+54.23 % $ 62.778
+54.45 % $ 62.865
+67.10 % $ 68.016
+66.44 % $ 67.746
+73.88 % $ 70.776
+60.36 % $ 65.271
+65.77 % $ 67.477
+76.37 % $ 71.790
+74.64 % $ 71.087
+73.21 % $ 70.503
+72.01 % $ 70.015
+76.51 % $ 71.846
+75.69 % $ 71.513
+93.83 % $ 78.895
+82.80 % $ 74.407
+86.84 % $ 76.051
+94.08 % $ 78.999
+105.68 % $ 83.719
+98.93 % $ 80.973
+100.03 % $ 81.422
+95.00 % $ 79.373
+98.61 % $ 80.844
+108.95 % $ 85.052
+112.89 % $ 86.655
+105.55 % $ 83.668
+113.79 % $ 87.020
+123.61 % $ 91.019
+131.22 % $ 94.114
+114.80 % $ 87.433
+115.63 % $ 87.770
+127.01 % $ 92.403
+123.98 % $ 91.169
+127.13 % $ 92.453
+132.77 % $ 94.748
+140.79 % $ 98.011
+136.57 % $ 96.295
+137.21 % $ 96.553
+131.71 % $ 94.313
+136.32 % $ 96.192
+153.36 % $ 103.128
+158.03 % $ 105.029
+158.55 % $ 105.238
+150.49 % $ 101.960
+148.47 % $ 101.138
+159.39 % $ 105.584
+160.66 % $ 106.101
+166.28 % $ 108.388
+173.34 % $ 111.261
+165.13 % $ 107.918
+172.17 % $ 110.783
+163.02 % $ 107.061
+186.71 % $ 116.701
+184.01 % $ 115.604
+189.79 % $ 117.955
+191.84 % $ 118.791
+191.69 % $ 118.728
+198.83 % $ 121.636
+190.65 % $ 118.304
+198.80 % $ 121.625
+205.62 % $ 124.401
+203.39 % $ 123.490
+197.94 % $ 121.272
+190.91 % $ 118.411
+193.96 % $ 119.653
+194.99 % $ 120.074
+203.25 % $ 123.436
+219.60 % $ 130.090
+203.00 % $ 123.333
LUNA has 3 primary use cases. It is on one hand a governance token that can be used for voting purposes, and more interestingly, it is the reserve asset for UST. In order to mint 1 TerraUSD, $1 worth of the reserve asset (which in this case is LUNA) must be burned.
The total supply currently sits at around 990,000,000, without a max supply
Of that, ~406,000,000 are in circulation
And its inflation rate is currently at 6.26%
Some supplemental data:
Its market cap is currently around $11,460,000,000
Its fully diluted market cap is ~$27,000,000,000
The max supply of LUNA is currently not set, meaning that there is no cap as to how many tokens can exist. This can put it at the risk of additional inflation in the future since no ceiling exists that puts a limit on token mintage.
According to CoinMarketCap: Terra was founded in January 2018 by Daniel Shin and Do Kwon. Together, they came up with the idea of a project that can drive the rapid adoption of blockchain technology and cryptocurrency through a focus on price stability and usability.
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Kwon took on the position of CEO of Terraform Labs, the company behind Terra. Prior to developing Terra, Shin co-founded and headed Ticket Monster, otherwise known as TMON — a major South Korean e-commerce platform.
He later co-founded Fast Track Asia, a startup incubator working with entrepreneurs to build fully functional companies. Kwon previously founded and served as CEO of Anyfi, a startup providing decentralized wireless mesh networking solutions. He has also worked as a software engineer for Microsoft and Apple.
The project has a sizable Twitter account that has over 100,000 followers at the time of writing. The account is very active in retweeting several relevant content every day, and it itself tweets about once per day. Their original tweets are often about the project itself, as well as about DeFi in general; with the occasional reply here and there. What the account doesn’t do is shill the token, promise gains, overhype the project… etc, which inspires some confidence and trust.
Besides their Twitter, the project also has a YouTube channel, which currently has over 5,000 subscribers and a total view count a little north of 190,000. At the time of writing, the channel hasn’t uploaded anything in over 3 months; and based on their uploads, they seemed to have aimed for a monthly schedule. The channel features content such as AMAs and intros, and their most watched video is a 3 minute explanation of how Terra works.
Lastly, as is common with most projects, they also have a Medium where they post articles and blogs. For more in-depth updates, followers of the project can tune in to read about the latest the project has to talk about.
In terms of brand image, the project uses abstract and futuristic visuals with white, gray, black and blue shades; and their tone of voice is quite bold based on how they express their claims on their website.
Their official Reddit sub is currently home to ~5,600 members, and considering that sort of size, it is relatively active; seeing multiple posts throughout the day, almost all of which are engaged with.
Next comes their Discord channel, the invite for which (which is given by the official website) is unfortunately expired.
And lastly, is their official Telegram public discussion group. There are currently around 20,500 members who engage in conversations throughout the day, and while the quality of the messages differ from one user to the next, genuine and interesting discussions do tend to emerge.
Overall it seems like the community is rather active regardless of their sizes across different platforms, which is reasonable considering the scope and accomplishments of the project.
Exchanges & Wallet Support
Market Price Prediction
Here are what different websites are forecasting for LUNA:
According to Wallet Investor’s forecasts, LUNA can reach ~$28.96 (+6%**) by the end of this year, and ~$60.58 (+122%**) in 5 years time. It ranks LUNA as an A+ cryptocurrency in terms of predictability, the highest it has to offer.
On the other hand,makes a forecast of ~$25.23 (-7.5%**) for the end of 2021, and a price of ~$55.84 (+104**) for the year of 2026. A different start, but a shared idea for long term growth.
Lastly, Trading Beasts predicts a noticeable drop in price for the end of 2021, down to ~$22.35 (-18%**), and a minor increase for the end of 2024, ~$28.90 (+5.9%**).
*These predictions are merely supplemental data and should not be taken as financial advice
**Percentages are approximately based on current value and could change anytime
LUNA Price Prediction 2022
Majority of experts agree that this bull run will be an extended one and could last the whole 2022. CaptainAltcoin’s prediction model takes market sentiment into an account and reacts accordingly. Below is a month-by-month breakdown of 2022:
+9.09 % $ 134.541
+21.19 % $ 149.470
+39.69 % $ 172.286
+50.99 % $ 186.223
+68.71 % $ 208.070
+67.76 % $ 206.897
+92.15 % $ 236.987
+111.10 % $ 260.353
+129.78 % $ 283.396
+136.89 % $ 292.159
+147.86 % $ 305.698
+166.67 % $ 328.888
Terra price prediction 2025 -2030 – 2040
Our prediction model sees LUNA reaching new highs in 2025:$ 335.400
What will LUNA be worth in 5 years?
The price of LUNA in 5 years could lie around $ 503.198, according to CaptainAltcoin’s prediction model.
What Terra will be worth in 2030?
Our forecasting model sees Terra reaching 670.80054757488 in 2030.
What Terra will be worth in 2040?
Our forecasting model sees Terra reaching 1677.0013689372 in 2040.
Will Terra replace / surpass / overtake Bitcoin?
No, Terra will not replace or overtake BTC.
Can Terra reach $100?
Yes, Terra could reach $100 by the end of 2022.
Can Terra reach $1000?
Yes, it is possible that Terra can reach $1000 but only in a distanced future, after 2030.
How high will Terra go?
Our forecasting model sees Terra price exploding and reaching 1677.0013689372 in a distanced future.
Is Terra worth buying?
We are advocates of moderately risky investing – invest most of your crypto portfolio in BTC (50%); 35% in a basket of big cap coins and the rest in small projects with huge upside. So, in this context, Terra is worth buying.
Is Terra a good investment?
Terra is, just like all other cryptocurrencies, a risky investment. It does have higher probability of going up than down because of the good use case, well-designed tokenomics, active community and a solid team behind it.
How much will Terra be worth?
For the short-term future, it could reach 123.33286766698. In the long-term (8-10 years), it could jump to 670.80054757488 or even higher.
Why will Terra succeed and go up in price?
Terra has a good use case, well-designed tokenomics, active community and a solid team behind it. All of these are a prerequisite for success and that is why our prediction model sees Terra rising up to 670.80054757488 in 2030.
Why will Terra fail and drop in price?
Crypto projects fail for various reasons. Some of the most common ones are: team goes rogue and abandons the project, regulators declare it illegal and press exchanges to delist it, lack of media attention, more successful competitors, lack of well designed marketing strategy, losing community support, potential vulnerability in the protocol, failing to achieve anticipated minimum developement activity on the protocol, failing to attract new developers to build on their platform.
Can Terra make you a millionaire?
Yes, if you buy large enough sum of it. Do not expect to invest $100 and become a Terra millionaire. But 10x price explosions are a common sight in crypto, so a $10k investment in Terra could make you a millionaire.
Where & How To Buy LUNA
Where to buy LUNA:
How to buy LUNA:
The process of buying crypto can differ from exchange to exchange, but here are solid guidelines on how to buy LUNA:
- Select an exchange that supports LUNA and check for KYC (account verification) requirements and available payment methods.
- Create an account on your preferred exchange.
- Purchase LUNA with your preferred payment method.
Already have an account on an exchange that supports LUNA?
- Purchase LUNA with your preferred payment method.
- Swap some of your tokens with LUNA.
Note: When buying or swapping tokens, some exchanges may have minimum amounts in place. Additionally, most exchanges issue varying fees for purchases and swaps.
Summing It All Up
Projects that focus on adoption always have interesting approaches to adoption-related problems, and Terra is one such project. As cryptocurrencies gain more popularity, projects like Terra can become more valuable.
That being said, it is important to note that they are not the only project with an adoption-driven approach; and broadly speaking, almost all projects put a certain amount of effort into being adopted, regardless of how ideal their project is for such a process.
References & Resources:
CaptainAltcoin’s writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses. None of the content on CaptainAltcoin is investment advice nor is it a replacement for advice from a certified financial planner. The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of CaptainAltcoin.com