LUNA PRICE PREDICTION
Every other day a new cryptocurrency seems to surface, and each coin promises a string of benefits for its investors. Among them, a digital asset was designed in 2018, to increase the flexibility of the modern economy. Today, we know this blockchain protocol as Terra and its native token as LUNA. so what does the future hold for this coin?? Let's find out…
Hey, welcome back, everybody. In today’s video, we will be discussing what is LUNA and its PRICE PREDICTION. Watch till the end so you can double your money.
WHAT IS TERRA (LUNA)?
Terra is a stable coin-creating blockchain network created using the Cosmos SDK. Each Terra stablecoin is convertible into the network's native token, LUNA.
Holders of LUNA can pay network fees, vote in elections, invest in the Tendermint Delegated Proof of Stake consensus method, and peg stable coins.
HISTORY OF TERRA
Daniel Shin and Do Kwon launched Terra (LUNA) as a blockchain protocol in 2018. Terra uses a price stabilization system, that regularly balances a coin's supply to maintain price stability.
Lower fees, high scalability, stability, and certain financial assets are all features of the Terra network. LUNA, the protocol's native asset, tackles a variety of performance, scalability, and accessibility challenges.
WHAT'S LUNA?
Terra's coin, LUNA, serves four functions in the Terra protocol:
- A means of paying transaction fees in the company's gas system.
- A mechanism to participate in the governance system of the platform. You can create & vote on proposals to improve the Terra protocol by staking your LUNA tokens.
- A technique to absorb demand variations and maintain price pegs for stable coins created on Terra.
- A token can be used to participate in the DPoS consensus mechanism that allows validators to process network transactions.
The maximum target supply of LUNA tokens is one billion. Terra will burn LUNA until its collection recovers to equilibrium if the network exceeds one billion LUNA.
The Terra protocol's native cryptocurrency, LUNA, is one of the top ten most valuable cryptocurrencies by market capitalization.
The Terra protocol has made financial applications highly efficient by focusing on stable coins. Terra users can send money to each other in seconds, receive interest on their savings, and even borrow money.
If you're thinking about investing in Terra, here's what you should know.
- TERRA PROTOCOL PROVIDES STABLECOINS
Stablecoins have a better chance of catching on to transfer payments and purchasing goods and services because their prices are generally steady.
Terra features TerraUSD (UST), and various other currencies, including the South Korean won, Euro, and Mongolian tugrik.
- KEEP THE PRICE OF STABLE COINS IN CHECK.
Terra uses Luna tokens to keep its stable coin prices where they should be. When the stablecoin supply needs to be increased or decreased, it incentivizes trading between Luna and stable coins.
Consider the following scenario: UST, Terra's US dollar stablecoin, is in high demand. As a result, the price has risen to $1.05 when it should have been $1. Terra will need to increase the quantity of UST tokens to counteract this.
Terra then allows Luna token holders to exchange their tokens for UST, with $1 of Luna equaling 1 UST. After that, the token holders can sell the UST at the increased price of $1.05, earning a 5% profit on the amount of Luna they converted.
This is how all of Terra's stablecoins work. Terra also allows stable coin holders to convert to Luna at a profit during periods of low demand.
- PROJECT STAKING AND GOVERNANCE.
Holders of Luna tokens have the option to stake their tokens. You pledge those tokens to the network when you stake Luna, and they're used to validate transactions. There is no danger in doing so. You can always pull your tokens out of the game (take note that unstacking can take 21 days). You get a part of the transaction fees Terra earns on the use of its stablecoins if you stake Luna.
Luna holders have voting rights in the project because it is a governance token.
- IN SOUTH KOREA, TERRA IS THE MOST POPULAR.
According to a Terra video from May 2021, its stable coin linked to the South Korean ‘won’ is utilized by over 2 million people each year. Terra's stablecoin, pegged to the Mongolian tugrik, was used by 40,000 people every month.
Terra, to its credit, already has a clientele. It is now offering a significant incentive to acquire its US dollar stablecoin.
- REVENUE - TERRA BLOCKCHAIN IS IN THE TOP FIVE.
According to Token Terminal, Terra is in the top five in terms of revenue. It trails Ethereum (ETH), the Binance Smart Chain, and Bitcoin but is tied with Polygon (MATIC).
For Terra enthusiasts, this is a promising omen. While many cryptocurrency projects aren't in use yet, Terra is one of the biggest moneymakers.
HOW DOES TERRA WORK?
The Terra protocol functions as a distributed ledger kept up to date by network validators. Validators use the DPoS algorithm to vote on blocks, earning LUNA tokens. Terra miners contribute to security by participating in the Proof of Stake consensus mechanism. They also assist in price stabilization by absorbing short-term demand fluctuations.
As a result, the network achieves stability through mining rewards as the money supply contracts and expands. Terra's supply is constantly replenished or depleted by the LUNA pool & Terra pool. Miners use LUNA to mint Terra and the other way around. The procedure provides consistent rewards in both contractions and expansions. As a result, the simple supply and demand law applies.
Terra, a blockchain network, serves as a decentralized digital platform that provides users with Defi capabilities. Customers can spend, save, earn interest, or stake on the platform to help build a better Terra ecosystem.
Terra offers lower fees, better value stability, and smooth cross-border trades because of this system. This algorithm is a distinguishing feature, and its operation is the reason for the LUNA token's growing popularity.
UNIQUE FEATURES OF TERRA (LUNA)
Terra (LUNA) uses fiat pegged stablecoins. The use of such coins benefits society and eliminates the unpredictability of price changes. Stablecoin supply is automatically adjusted by the algorithm according to market demand.
This is accomplished by offering LUNA token holders incentives to swap stablecoins at a higher exchange rate, allowing the stablecoin supply to expand or reduce in accordance with demand.
INCREASING THE EFFICIENCY OF THE GLOBAL PAYMENT SYSTEM
Even on weekends, the Terra blockchain can handle over 10,000 transactions per second at near-zero cost. Visa, which processes 1,700 transactions per second, operates only on weekdays and is over 100 times more expensive.
EXPERIENCING RAPID EXPANSION
Even though Terra is still relatively new, it has gathered enormous wealth. According to Terra's website, Terra's Chai payment system has two million users and performs more than $1 billion in transactions each year.
POTENTIAL FOR FURTHER EXPANSION
The global FinTech markets & payments business is worth more than $160 billion and is predicted to grow at a 24 percent annual rate to $310 billion by 2025. Terra's blockchain network supports stablecoins, which have opened a multi-trillion-dollar opportunity in the payments & banking area, with supply growing from $5 billion to $170 billion. Terra's stablecoins could gain a 20% market share by 2025, up from less than 8% today in 2022.
PRICE HISTORY OF TERRA
Since its inception, the Terra has performed admirably, with an all-time low of $0.1201 and a recent all-time high of $106.14. LUNA is currently trading at $104.52 and has a market capitalization of $37,184,327,899. Terra prices have increased considerably during the last 24 hours, setting a new all-time high. For the time being, volatility is significant, and also the fully diluted market cap is over $78,688,053,066.
Terra has a return on investment of 6033.05 per cent, making it a better-than-average investment. The LUNA price has risen steadily over the last year, and it is projected that adoption will drive up the token's price in the future.
https://www.namecoinnews.com/terra-luna-price-prediction/
TERRA (LUNA) PRICE PREDICTION 2022
The price of LUNA had difficulties maintaining an uptrend, as evidenced by the fact that the price trend was declining. As expected, the decline was just transitory, and prices have begun to rise. A minimum price of $45.07 will be met within the first quarter.
According to our projection, the market will likely side trend from here, and Terra may exceed the $100 level in the third quarter, reaching a maximum price of $130.91. The price could set a new high. This year's average market price for LUNA will be $71.08.
What do you think the future holds for Terra? Do you think the coin will be able to reach an all-time high?? Let us know in the comments below. Before that, please don’t forget to like, share and subscribe to our channel. We’ll see you in the following video.
https://www.namecoinnews.com/terra-luna-price-prediction/
Disclaimer
Do remember that this video should be construed as investment advice only. The crypto market is highly volatile, so please research and consult with a certified finance expert for the best advice before investing.
https://www.namecoinnews.com/terra-luna-price-prediction/
https://mg.co.za/special-reports/2022-02-22-why-luna-beat-bitcoin-and-could-be-the-next-big-thing/
https://academy.binance.com/en/articles/what-is-terra-luna
https://www.fool.com/the-ascent/cryptocurrency/articles/7-things-to-know-before-you-buy-terra-luna/
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