Even though UST and LUNA went virtually to zero in 2022, the plans of revival are in motion. What are the prospects of the rebooted LUNA token and what is Terra price prediction 2022? Read in this article.
Terra Price Prediction 2022-2030
- Terra price prediction 2022 is surprisingly bullish: experts expect that the rally will extend to $1.45 and even $2.10;
- Estimates at which LUNA will be traded in 2025 are placed between $3.25 and $4.91;
- Analysts that believe LUNA will be around in 2030 say it will be worth anywhere from $6.43 to $9.15.
What is LUNA?
Terra is a blockchain platform for quick and borderless payments, the main feature of which is algorithmic stablecoins pegged to different fiat currencies. Unlike fiat-backed stablecoins such as Tether and USD Coin, the price of Terra’s stablecoins is kept stable by an automated market maker which lets Luna and Terra’s stablecoins be traded in both directions. The Terra platform’s native currency LUNA is instrumental in keeping the peg of stablecoins. It is used for buying and selling these stablecoins at a discount or a premium when the demand is high or low respectively. Other than that, LUNA represents the voting power validators hold and can be staked or delegated for a source of passive income. Locked LUNA cannot be freely traded, and there is a vesting period of 21 days.
In May 2022, UST suffered a depeg which caused LUNA to be minted uncontrollably. This diluted its supply to the extent that both tokens went to virtually zero. Bagholders were understandably not happy and hard forked the blockchain: the offshoot got a nickname LUNA 2.0 and retained the ticker. The original blockchain is still going under the name Terra Classic (LUNC).
You can read more about the Terra protocol, stablecoins and the LUNA token in our Beginner’s Guide to Terra and LUNA.
LUNA Price History
LUNA Price in 2019-2020
Terraform Labs held three rounds of presale in May through October 2018 with a vesting period of 3 months to one year. By mid-2019, the tokens that were sold in the presale rounds for $0.1 to $0.8 arrived at the market. Despite opening at $1.3, LUNA closed 2019 at $0.26. In 2020, trading volumes significantly increased but the price did not exceed $0.6 until closing at $0.65.
LUNA Price in 2021-2022
2021 has started a rally that led LUNA to multiply its price. By March, it was taken with a market-wide bull run up to $21.98 and by May it was back down at $4.10. The second wave of the bull run massively improved the gains of LUNA holders further. In December 2021, it almost reached $100 and closed at $85.47. On Mar 9, 2022 LUNA defied all expectations and renewed its ATH: $104.58.
Two months later, over a weekend, UST has lost its dollar peg, which eventually caused LUNA to grow in supply. When the recounts tell that LUNA went to zero, it is not an exaggeration: on May 4, it was worth $82.58. On May 15, it was only $0.0004608. The LUNA crash sent shockwaves across all the crypto market. To recompense the LUNA and UST holders that have lost everything, Terraform Labs suggested a hard fork to airdrop a new token. Despite being a largely unpopular measure, the proposal passed governance vote and the blockchain was split.
The current price of LUNA is $2.11 and it ranks 112th by market capitalization on CoinMarketCap.
What Influences the Price of Terra Crypto?
Adoption
The Terra platform was designed to give opportunities to use stablecoins to a wide array of users. The more it onboards, the higher the demand for Terra’s stablecoins is, and the faster the algorithm providing price stability works. One of the largest partners of Terra is CHAI, an e-commerce platform that brought 1.3 million users to the ecosystem.
Token Economics
The relationship between UST and LUNA supply dynamics is what helped propel LUNA to its new high above $100. Anchor Protocol integrated Terra’s stablecoins and offered a 20% annual percentage yield. The demand was so high that the supply of UST increased dramatically, offering arbitrage opportunities for LUNA holders. Moreover, Luna Foundation Guard had to burn 4.2 million LUNA available in their treasury to balance out the curve.
Unfortunately, the same tokenomics led to the LUNA 1.0 collapse. Moreover, the aforementioned Anchor Protocol exacerbated the crash because it utilized unsafe means to provide yield. In the LUNA 2.0 iteration, the stablecoins have been phased out, and the token’s value derives from the ecosystem’s value.
DeFi and Staking
The integration and the subsequent rise in demand created a positive feedback for LUNA’s price. It became the second largest protocol in DeFi by total value locked and the most staked asset. Large protocols that rank at the top of these ratings have a higher chance to attract new users that look for reliable ways to earn with DeFi.
Since the crash, this has become the most important factor in the appreciation of Terra. The remaining community hopes to get the ecosystem to develop enough to warrant valuation close to the one before the collapse.
Terra Price prediction 2022
In their Terra crypto price prediction 2022, Tech News Leader expects the LUNA price to peak at $3.32 by the end of the year. The price is expected to stay in the range between this peak and the suppoort at $2.78.
LUNA price prediction 2022 based on sentiment by Analytics Insight is more tempered. The highest they can see LUNA go in 2022 is $1.
Terra price prediction by CryptoNewsZ is reasonably bullish on Terra 2.0. They expect it to recover to a $1.45 at the very least. The highest point LUNA can reach is $2.1.
Terra (LUNA) Price prediction for 2023 and 2024
According to a prediction service Gov Capital, in 2023 the opening price of LUNA will reach $1.26. The average expected closing price in this Terra price prediction 2023 is $47.52. Another prediction service, PricePrediction.net, claims that in 2024 the average price will be around $2.54. The average is calculated by taking into account the maximum price of $2.83 and minimal $2.47.
Terra (LUNA) Price prediction 2025
Long-term trend analysis by CryptoNewsZ gives a bullish outlook but sees LUNA reach only $4.91 by the middle of the decade. Possible reasons for Terra rallying could be market cycles and wider adoption.
Terra is evaluated bearishly by the WalletInvestor service. According to their LUNA price prediction for 2025, by then it can be trading in the range between $0.073 and $0.1096.
More concrete estimates are provided by Digital Coin. They see LUNA appreciating and fluctuating between $6.15 and $7.42 on average.
Terra (LUNA) Price prediction 2030
Long term predictions are tricky, since there are always plenty of forces in action forming the price of an asset, some of which may not even exist yet. Previous LUNA price predictions did not account for the collapse in May 2022, for example.
But if things had gone well for Terra, LUNA could have been worth up to $1,200, Crypto Academy says. Crypto and Fire puts the target even lower, between $298.76 and $594.54.
Both of these predictions were made before Terra tanked, and failed to account for it. A newer LUNA forecast by BeInCrypto claims in case of success, LUNA 2.0 can be worth up to $52.92 in 2030.
ChangeHero LUNA price prediction
Terra’s approach to algorithmic stablecoins did not prove to be a huge success, and Terraform Labs lost the vast majority of the community’s trust. It is now up to them to bring Terra back from the ashes, if it is even possible. In the short term, it is reasonable to expect a positive response from the bullish sentiment on the market. In that scenario, LUNA can rise up to $3.
How to get LUNA on ChangeHero?
Getting LUNA with crypto without sign-ups is possible on ChangeHero, and it’s very easy:
- Choose the currencies on the home page, amounts and the type of exchange. Provide your LUNA wallet address in the next step and check the amounts;
- Double-check the provided information, read and accept the Terms of Use and Privacy Policy;
- Send in a single transaction the sum of cryptocurrency you will be exchanging. Fixed Rate transactions have a 15-minute limit;
- All done? Now we are doing all the work: checking the incoming transaction and doing the exchange as soon as it arrives.
- The Best Rate transactions will use the rate current to the time when your funds arrive. The Fixed Rate will use the rate at the time of step 1;
- As soon as the exchange has been processed, your LUNA are on the way to your wallet.
ChangeHero’s customer support is available 24/7 in the chat on our website or through the email: [email protected].
Conclusion
Terra’s story in the past couple of years is one of a booming success and an equally impactful fall. It has showed that this model could work well enough but if it fails, it does so spectacularly. Nevertheless, the desire to make up for it is what keeps the current Terra going.
What do you think about these predictions? Find more of them in our blog or discuss it in our social media: Twitter, Facebook, Reddit and in Telegram.
FAQ
What is Terra and LUNA?
Terra is a protocol for creation and management of dApps and DeFi products. It used to be a stablecoin protocol, where peg was maintained through burning and minting LUNA and trading it with the stablecoins.
What will LUNA be worth in 2022?
Various sources give different LUNA price predictions 2022 ranging from $1 to $2.78.
What will LUNA be worth by 2025?
Experts name targets in the range between $0.073 and $7.42 for LUNA in 2025.
What will LUNA be worth in 2030?
By 2030, Terra can grow to $52.90, analysts claim.
Where to buy Terra (LUNA)?
You can buy Terra with crypto without any hassles or sign-ups on ChangeHero in three easy steps: pick a crypto pair, provide an amount. Choose between the Best or Fixed rate, proceed. Provide your LUNA wallet address and other details, read and accept Terms of Use and Privacy Policy. Make a single payment to the address ChangeHero will generate for the transaction. Wait a bit and the LUNA are in your wallet!
Can Terra reach $1,000?
Even optimistic predictions from before 2022 claimed LUNA could reach and exceed $1,000 some time after 2025. Terra price predictions these days do not attempt to make such claims anymore.
