In 2009, the first cryptocurrency known as Bitcoin was developed by an anonymous person called Satoshi Nakamoto. While its founder remained unknown until now, the development of the first crypto led to the emergence of hundreds of other cryptocurrencies in the market that people utilise and enjoy nowadays. Among all the altcoins that surged in the past years, one crypto has been slowly establishing a name in the market and is becoming popular and has caught the interest of crypto enthusiasts – Terra Luna. Read on to know what this crypto is, its history and predictions in 2022 to see if it is worth your time and funds.
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Terra Luna: Overview
Compared with the native currency Luna, Terra is a stablecoin that uses blockchain technology that Cosmos SDK builds. Although it is under the stable coin category, this cryptocurrency is not collateralised by fiat money; instead, it can be converted into Luna – the native coin of the said cryptocurrency.
Terra’s blockchain network serves as a decentralised digital exchange and offers DeFi abilities to its users. Customers are unrestricted to pay, hold, or stake on the platform or generate interest in creating a new and improved Terra environment that can provide DeFi abilities to the people in the crypto-verse and enthusiastic crypto community. Speaking of an improved trading environment, traders also visit the official website of Immediate Edge for a safe and efficient trading experience. This platform connects traders to trusted brokers in the market that are equipped with the needed tools and knowledge to take trading to the next level. Learn more about the trading software and its specifics.
Its founding company, the Terra Labs, also offers a wide array of stablecoin alternatives – one of them is its native token, Luna. These coins are settled by a price stability algorithm implemented which adjusts to the elastic monetary approach to help Terra offer low fees, smooth cross-border exchanges, and increased stability in value. This algorithm is one of the unique features of this crypto and is one of the reasons for the increasing popularity of the Terra Luna token.
Terra Luna: A Bit Of History
In 2018, South Korean businessmen Did Kwon and Daniel Shin launched Terra Luna at their headquarters in Singapore called Terra Labs, operated by Terra protocol. Like other cryptocurrencies, Terra Luna is also based on blockchain and functions through algorithms to generate its currency. This crypto’s stablecoins are referred to as UST or TerraUSD.
Its main network now provides stable coins with the company’s goal to reach a more elevated adoption rate of blockchain and cryptocurrencies. These stablecoins are fixed to Won, Dollar and other traditional currencies. The project prioritised supplying stability in the price of Luna and utilised points that made sense in delivering stability to drive market adoption due to the volatile nature of the crypto market.
Last December 2021, Terra Luna was in the headlines of the crypto-verse for being a paper on the list of Top 10 cryptocurrencies in the market. Its price and market capitalisation skyrocketed to an all-time high of $29.3 billion and $75.56 billion – values which surpass popular cryptos such as Dogecoin, Avalanche and Shiba Inu.
Terra Luna is also a casualty of the crypto’s fluctuating nature. In the first few days of December 2021, it experienced price drops of up to 17% for 24 hours and experienced gains of up to 32%, which is higher compared to Bitcoin’s value at that time, which declined to 15%. At the beginning of 2022, Terra Luna’s value was around $300 million and completed its first bull run surge in July 2022 up to $2.6 billion.
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Terra Luna: Price Crash
Over the years, most cryptocurrencies experienced a downfall due to the market’s volatile nature, including Bitcoin and Ethereum. However, the biggest fraction of the hit was carried by Terra, which experienced a downfall of almost 100%. Due to this, all traders, investors and crypto enthusiasts have two questions in their minds: Will Terra Luna recover from this crash, and what will this crypto’s value be in 2022?
The fall in values of Terra Luna has scared away thousands to millions of traders and investors, which led to questioning its stability. The huge crash of this cryptocurrency reminds people of the global financial crisis of 2008, where about $830 billion of the overall market value of crypto assets were wiped out. However, the founders of Terra Luna worked hard to crack the nut and find a way to recover the cryptocurrency.
Do Kwon tweeted a retrieval plan for LUNA’s price crash in his account. He also revealed that he was doing rounds in the market and figured out that The Luna Foundation Guard strives to fund about $1 billion to restore the stablecoin. Do Kwon also developed a new blockchain that will hold 1 billion LUNA tokens to be allocated among the latest terra apps of its current UST and Luna investors.
Terra Luna: 2022 Predictions
The recent value changes and downtrend of Terra Luna have shocked investors who had this crypto coin in their portfolios. After its major update or platform modification, these crypto investors just hope that the coin may start an uptrend. The previous price predictions of Terra Luna were reiterated to match the current state of the market and the coin.
Terra Luna’s value has difficulty maintaining an uptrend, and that was proven to be as the price trend of this coin is going down. Even though the initial downtrend was temporary, the prices of the coin have now crashed without showing any sign of recovery. A minimum price of $0.0000925 is expected for the year 2022. Experts predict the market may experience a side trend, and Terra Luna may cross the $.0.0001 mark in the third quarter and will attain a maximum price of $0.000314. So, according to the forecast, the average market price for Terra Luna this year will be $0.000203.
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Conclusion
It’s given that the cryptocurrency market has a highly volatile nature, and almost every cryptocurrency in the market suffered from it, including Terra Luna. In recent years, Terra Luna was a very profitable investment, but the recent price crash has turned the tables around. However, Terra Luna may be a good investment for an average investor if the network can bring some stability, so make sure to check out the above to understand this crypto and its value predictions.
