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Is LUNA a Good Investment?

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LUNA Good Investment
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The altcoin market is steaming hot right now and many alternative currencies are performing superbly. Blockchain investors willing to make the most of the current bull run are looking for coins and tokens which will allow them to make the largest gains. Is LUNA one of these tokens?

What Is the LUNA Token?

LUNA is the native token powering the Terra blockchain protocol. Terra is a unique stablecoin-based cryptocurrency ecosystem designed to solve one of the main problems of blockchain technology: extremely high volatility.

The high volatility of digital currencies is considered a major obstacle to widespread crypto adoption. The fact that the prices of cryptocurrencies can rise or fall dramatically within minutes is the reason why many businesses around the world hesitate to accept crypto as a form of payment.

In order to address the problem of high crypto volatility, stablecoins were created. But LUNA is not just another stablecoin – it’s a token underlying Terra, a vast ecosystem combining many different stablecoins integrated with payment processors and e-commerce platforms around the world.

The History of Terra

Daniel Shin and Do Kwon

Terra is a project founded in January 2018 by two experienced blockchain developers named Daniel Shin and Do Kwon. Shin and Kwon have previously worked in tech giants such as Microsoft and Apple, and have decades of combined experience in e-commerce, mesh networking, and blockchain.

The development of Terra took over a year, and the working platform was finally launched in April 2019. Ever since then, the Terra ecosystem is constantly expanding by adding new stablecoins to the platform. Aside from TerraUSD (UST) pegged to the US Dollar, the users of the Terra platform also have access to stablecoins such as KRT and MNT, pegged to the Korean Wan and the Mongolian Tugrik respectively.

Another aspect of the development of Terra is expanding its impressive list of partnerships. Terra specializes in partnering with payment processors and e-commerce platforms, especially in the Asia-Pacific region. Currently, Terra is partnered with numerous industry leaders from dozens of countries, with a combined user base of 45+ million.

How Does the LUNA Token Work?

LUNA is the core element that powers the entire Terra ecosystem. Seamless interaction of many different stablecoins within a single platform is made possible only because of the LUNA token.

Like all stablecoins, the digital assets on the Terra platform are also pegged to traditional fiat currencies. The unique aspect of Terra is using the LUNA token to incentivize stable prices of digital assets by creating an organic market demand in which the Terra users can earn income by using LUNA to stabilize the prices of Terra stablecoins.

LUNA has a dynamic circulating supply: new tokens are generated in order to regulate the prices of stablecoins on the Terra platform. However, the total supply is limited at 1,000,000,000 LUNA (1 billion), as any tokens generated over that limit are immediately burned. Because of that, LUNA is a deflationary cryptocurrency just like Bitcoin, and the LUNA price is expected to appreciate over time.

LUNA Price Performance So Far

Luna-USDT-daily-chart

The LUNA token is one of the digital currencies which remained unnoticed by the general public until the current massive crypto bull run started. Ever since the launch of the Terra protocol in 2019, the LUNA price remained at a steady level around $0.30.

In January 2021, the LUNA price suddenly erupted. The valuation of LUNA achieved its current all-time high of $22.33 on March 21st, 2021. So far, the LUNA token has been performing phenomenally and provided the investors with a superb rate of interest of over 890%. However, many experts are convinced that LUNA is still an undervalued gem that has plenty of space to raise in price much further.

LUNA Price Forecasts: Will LUNA Reach $50?

Since LUNA is a deflationary digital asset with a very serious real-life use case, almost all experts and observers are convinced that the LUNA token price will continue to grow. When it comes to specific numbers, a lot of members of the crypto community seem to think that $50 is a realistic price goal for LUNA to reach in 2021.

One of the crypto bloggers who believe that the LUNA price will reach $50 by the end of the year is the Twitter user going by the name Jean-Pierre:

Similar prediction is also shared by many specialized price forecast services such as WalletInvestor. According to the website, LUNA will trade for over $54 at the end of 2021.

Some pride prediction platforms are even more bullish when it comes to the LUNA token. According to the website Cryptocurrency Price Prediction, LUNA can surpass the $100 price level and be worth as much as $105 by the end of the year.

For dedicated LUNA enthusiasts, even $105 is too low. According to the survey created by the Twitter user BetTerra, many investors are convinced that LUNA will trade for $140 or more in 2021.

LUNA Price According to the Analysts

Youtube analysts are very bullish about LUNA, and many of them believe that LUNA can surpass $100 by the end of the year. Ryan Matta points out that if the LUNA market cap grows by 10x, the price of LUNA would be over $160. Matta is convinced that while that level is realistic, anything over that is highly improbable.

The renowned channel Token Metrics came to a similar LUNA price prediction with a different methodology. Token Metrics gives the $148 LUNA price target based on the fact that with the potential LUNA has, it can increase its market share by the end of 2021 and become one of the most popular altcoins on the market.

Will LUNA Reach $100?

Although some crypto researchers believe a smaller price target is more likely to happen, many experts think that $100 is a realistic LUNA price prediction for 2021.

How to Get LUNA Token?

Since LUNA has already gained considerable popularity, it can be easily acquired on multiple exchanges, including major crypto marketplaces like Coinbase.

Should You Invest in Luna? – Conclusion

The LUNA token is a digital asset fulfilling an important real-life use case and built by a respectable team. Experts believe that LUNA is still undervalued and has a lot of room for growth, which is why the LUNA token is considered a good investment.

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