Is Terra(LUNA) Coin a Good Investment?

Kavya Barua

Following Bitcoin’s meltdown, the whole market appeared to turn red, except a few altcoins such as Crypto.com currency and, shockingly, Terra (LUNA). LUNA was one of just a few altcoins in the top 20 to earn more than 5% daily and 8% weekly.

Why Invest In Terra (LUNA) Coin?

Terra is a blockchain technology that powers a price-stable global payments network by using fiat-pegged stable coins. According to its official whitepaper, Terra combines the price stability and widespread use of fiat currencies with the censorship-resistance of Bitcoin (BTC) to provide quick and economic transactions.

Terra’s main net went live in April 2019 after a year-long development. It provides stable coins tied to the US dollar, South Korean won, Mongolian tugrik, and the International Monetary Fund’s Special Drawing Rights basket of currencies as of September 2021, with more choices on the way.

The LUNA token, Terra’s native token, keeps the price of the protocol’s stable coins stable. Holders of LUNA may also propose and vote on governance ideas, making it a governance token in the making.

Unique Characteristics of Terra (LUNA)

  • Holders of LUNA Can Get Rewards for Staking

LUNA token holders might choose to stake their tokens in the Terra ecosystem. When users risk LUNA, they promise their tokens to the Terra network, and their tokens are then used to validate transactions. Users can remove their tokens from the Terra ecosystem by unstacking them, although this procedure can take 21 days to complete. Staking LUNA earns investors a recurrent part of the transaction fees Terra receives when its stable coins are used.

Terra currencies are allocated according to the Terra protocol, which distributes tokens first to validators, pays a commission for their services, and then to delegators, given their fair amount of tokens.

The benefits that LUNA holders receive via staking, like any other staking mechanism in the crypto industry, are proportionate to the size of the stake — the quantity of rewards is precisely proportional to the magnitude of the transaction volume. The demand for LUNA will rise as more Terra applications or use cases for UST emerge, resulting in a rise in LUNA’s value.

  • Stablecoins Used In Various Situations

Terra has a flexible design to bring self-stabilizing stable coins and other unique features to the market. To achieve this, the network relies on an elastic monetary supply mechanism. To maintain stable coin values aligned to their underlying assets, the network automatically modified the number of its stable coins.

Terra USD (UST), TerraSDR (SDT), TerraKRW (KRT), and TerraMNT are just a few of the stable coins available (MNT). These stable coins are all backed by a currency, such as the US dollar, Mongolian tugrik, South Korean won, etc.

Anchor is a low-volatility deposit-based savings system based on Terra stable coins. The Terra stable coin network has offered it as a mechanism for Terra stable coin holders to gain rewards. Earnings are deposited into Terra stable coins in the same manner as they are deposited into a bank account.

The Anchor rate is more stable than money market interest rates because it is maintained by a broad supply of staking rewards from major proof-of-stake blockchains.

The protocol allows for instant deposits and withdrawals. Anchor also functions as a lending platform, allowing borrowers to get short-term loans using liquid-staked PoS assets from various blockchains.

Mirror is a DeFi technology that permits the production of mimicked assets known as’mAssets’ using smart contracts on the Terra blockchain (Mirrored Assets). mAssets mimic the market behaviour of real-world assets, allowing traders from all over the globe to acquire price exposure without the difficulties of owning or trading real-world assets.

Terra users may easily create fungible assets via the Mirror Protocol. These freshly made assets are referred to as synthetics. To establish a Mirror asset (Masset), just put up more than 150% of the value of the existing investment in Terra stable coins or assets as security.

Terra, like Ethereum, employs the use of gas to carry out smart contracts. This strategy facilitates the elimination of spam from the blockchain while also providing miners with a financial incentive to do these tasks.

Validators set minimum gas prices and reject transactions with implied gas costs that are less than this. At the end of each block, the computation costs are allocated pro-rata to the participating validators.

This year, Terra (LUNA) is one of the most popular cryptocurrencies, taking the crypto world by storm. To be more exact, the cryptocurrency hit an all-time high of $54.16. Terra’s outstanding success allows the network to attract crypto investors from all around the world.

For some, LUNA is of the most surprising cryptocurrencies that have been rallying this year. Terra (LUNA) is a fantastic digital currency alternative since it is decentralized and does not require permission from anybody — permissionless. The Terra network offers low-cost programmable payments and transaction expenses and an architecture that facilitates the creation of decentralized apps (dApps) and stable coins.

The price of Terra is expected to rise in 2021. It also stands a good chance of setting a new high this year. That will only happen if it can overcome a variety of psychological barriers.

To start trading and investing in LUNA and other cryptocurrencies, you must first open an account with a reputable cryptocurrency exchange. A cryptocurrency exchange in India is a brokerage that allows you to trade Terra (LUNA) and other cryptocurrencies.

If you’re interested in cryptocurrency trading, BuyUcoin is an excellent place to start. BuyUcoin is a secure cryptocurrency trading site that allows you to buy, sell, and trade more than 150 different cryptocurrencies.

At BuyUcoin, you may also buy LUNA Coin using the Mobikwik Payment Gateway to link your debit/credit card to your account (we offer VISA, Rupay, and Mastercard).

Terra has been steadily increasing over the last four months. As a result, we believe that similar segments of the market were viral at the time. Terra’s trading volume has grown over the last four months, according to the most recent data.

LUNA surpasses its all-time high of $54.16, with the stock last trading slightly below $52. After Friday’s sell-off, it has gained nearly 29% in the previous seven days and is the best-performing large-cap stock.

According to statistics obtained from terra.smartstake.io, the move comes after five days in which more than 1 million LUNA were burnt. This has lowered the circulating LUNA supply by 5.6%, from 122.7 million to 115.8 million.

Terra claims that its usage of fiat-pegged stable coins distinguishes it from the competition by combining the borderless benefits of cryptocurrencies with the day-to-day price stability of fiat currency. It maintains its one-to-one peg thanks to an algorithm that adjusts stable coin supply in response to demand.

It motivates LUNA holders to trade LUNA and stable coins at lucrative exchange rates as needed to extend or reduce the stable coin supply to meet demand.

Terra has partnered with a variety of payment systems, primarily in the Asia-Pacific area. Terra announced a collaboration with Chai, a South Korean mobile payments app, in July 2019 that would see transactions made through the app on e-commerce platforms processed over the Terra blockchain network. The merchant is charged (on average) a 2% — 3% fee for each transaction.

LUNA price in India at the time of writing is 4,024.26 INR, with a 24-hour trading volume of 125,570,844,380 INR. Our LUNA-INR price is updated in real-time on our website. Terra has increased by 9.22 per cent in the last 24 hours. With a live market cap of 1,575,969,566,627 INR, CoinMarketCap currently ranks 13th.

Market Sentiments for Terra(LUNA)

Based on our forecasts, a long-term increase is expected; the price prognosis for 2026 is $198.271. With a 5-year investment, the revenue is expected to be around +1033.17%.

The price of Terra (LUNA) might trade around $24 by the end of 2021. Maximum Terra price $26.62, and the minimum at $21.45. The average price for December might be around $23.60.

Being based on a logical algorithm, the token has both short-term and long-term potential advantages. The Terra price may trade around $35.40 by the end of 2022.

Terra is a blockchain technology that uses fiat-pegged stablecoins to power a price-stable global payments network. Terra combines the price stability and widespread use of fiat currencies with the censorship-resistance of Bitcoin (BTC) to provide quick and inexpensive transactions, according to its official whitepaper.



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