The Terra (LUNA) price took a nosedive yesterday after significant gains of the past few days. The coin was down by nearly 50% in just one day, and it’s unclear what caused this drop.
One possible reason could be that many traders believe some sort of pump-and-dump scheme is at work with the coin’s steep rise in value leading up to its crash yesterday on rumors about Segwit activation for BTC or Lightning Network integration. Others might have been caught off guard when an exchange announced that they would stop trading LUNA altogether because demand had dried out so much from investors seeking more lucrative coins during their downturns; as well as cash dumps coming from whales who bought into low prices expecting them to continue rising steadily before abruptly selloffs occurred. Still others speculate that there may even be a hidden agenda behind these sudden drops, whether intentional or not: A buyout of all remaining share holders by large players looking to corner the market and drive upward prices over time until everyone else has given up hope on seeing such growth ever again.,
“terra (luna) price prediction 2030” is a new project that has been making waves in the cryptocurrency world. The project has seen a rise in value and is set to continue on its path of success.
For cryptocurrency investors, the Christmas weekend was a letdown, with major cryptocurrencies scarcely moving in price. On the basis of rising momentum, Terra’s LUNA, which had recovered from a minor fall on Thursday, surged beyond $10o on Friday. The stablecoin’s advance, however, was halted short over the weekend, with the coin settling between $96 and $98.
According to data from coinmarketcap, LUNA experienced bullish action early on Monday, rising to an all-time high of $ $103.33. The stablecoin then dropped for a few hours before briefly surging and then resuming its downward trend.
One of the year’s best performers
The protocol for a high-performance blockchain Terra is becoming increasingly popular. The protocol began the year as a long shot, but it has since grown into a credible candidate for the best Ethereum alternative. Terra’s LUNA is presently dominating the top gainers leaderboard for the year, outperforming both old boys like Bitcoin and newcomers like Solana and Polygon.
This quarter, the fiat-pegged stablecoin has had an incredible run, breaking into the top ten cryptocurrencies by market capital. LUNA has gained an incredible 12,684 percent year to date, after starting the year with a price of less than $1. With a market cap of slightly more than $30 billion, LUNA is now the second-largest stablecoin and seventh-largest cryptocurrency, down 6.46 percent in the last 24 hours.
The market capitalization of the TerraUSD (UST) stablecoin has surpassed $10 billion.
Terra’s main stablecoin, UST, which is tied to the dollar, climbed to 20th position among the world’s biggest currencies this week after reaching a market value of $10 billion.
3-month market capitalization chart for TerraUSD
At the start of the month, the fast-rising currency dethroned MakerDao’s DAI as the biggest decentralized stablecoin, and it is already within striking distance of Litecoin and Uniswap’s native token. According to TokenInsights statistics from earlier this week, Terra’s top DeFi lending protocol, Anchor, has received nearly $3 billion of the UST in circulation.
Terra is sweeping the DeFi sector: Here’s everything you need to know.
Terra’s decentralized financial ecosystem is unusual in that it uses the fiat-pegged stablecoin LUNA. According to DeFi Llama, it is the second largest chain, with a total value locked of $17.66 billion, down 12.10 percent from its all-time high TVL number. Anchor is the most popular project on the chain, accounting for nearly half of the total value locked (47.14 percent).
Terra’s TVL chart and the dominance percentage of the top protocol
Bitwise’s Matt Hougan mentioned LUNA’s current rise in an interview with Taylor Locke on CNBC Make It, calling it “an extremely incredible run.” In terms of market fluctuations and volatility, Hougan, the chief investment officer of the digital asset management business, noted that LUNA had taken a different route than other altcoins.
“It has mainly been unaffected by recent market volatility, dropping less and rebounding more quickly than its rivals.”
LUNA, however, is a riskier asset, according to the Bitwise executive, since it manages its blockchain’s stablecoin pegs. This is because the currency serves as a’shock absorber’ for changes impacting Terra’s stablecoins, he noted. LUNA might suffer knock-on repercussions if stablecoins on the platform were unable to retain their pegs, according to Hougan.
Hougan drew this conclusion from the fact that LUNA acts as a volatility absorption coin, implying that its market movement may resemble that of the platform’s stablecoins. He also believes that adoption is critical for the stablecoin to compete with its competitors. Terra is still in its infancy, according to the Bitwise investing expert, and will need to attract additional investors to remain afloat when incentives run out.
What factors influence the price of LUNA?
The introduction of burn on Terra, as well as negative financing rates, are credited by market observers for LUNA’s recent price increase. Terra’s burn implementation (proposal 44), which was revealed at the end of October, is based on Ethereum’s EIP-1559 proposal.
The price of tokens has traditionally been influenced by the burning of tokens in the community pool, and experts think this is still the true now. According to statistics from analytics platform Terra Analytics as of Monday this week, a total of 27 million LUNA tokens have been burnt so far this month.
Market performance of Terra (LUNA).
LUNA is down nearly 1% on the day and trading at roughly the same level as last week at this time.
Trading chart for LUNA/USD for the past 7 days
Even if the token has retreated and plunged below $90 in recent days, analysts are still convinced that its bull cycle is not over. Buyers seem to be on the fence about whether to make their move and reclaim control. The token hit a seven-day low of $81.24 earlier today, but has subsequently recovered to $85.
Watch This Video-
The “terra (luna price prediction 2021)” is a cryptocurrency that has been scaling new heights and setting a new all-time high. The project will be holding their first retreat after a week of success.
Related Tags
- terra (luna) price prediction 2025
- terra (luna price prediction tomorrow)
- is terra luna a good investment
- terra luna news
