Recently, Terra’s Luna token hit a new all-time high just above $33. It has since pulled back about 10 percent from that peak. What is the Luna coin price prediction and when will it reach $100?
Since Bitcoin, there has been an explosion of cryptocurrencies. Many have impressed investors, but others have been disappointing. What investors know now is that not all cryptocurrencies are going to generate rewards. If you wondering whether Terra coin is a good investment, it will be wise to learn more about it first.
What is Terra's luna coin?
Terra is an Ethereum-type blockchain. The project is run by a South Korea-based startup called Terraform Labs, which is backed by institutional investors such as Huobi Capital, HashKey Digital Asset Group, Pantera Capital, Arrington Capital, and Lightspeed Venture.
Similar to Ripple and Stellar Lumens, Terra is a payment-focused crypto project. Terra is particularly focused on e-commerce payments using stablecoins. The LUNA token powers transactions on the Terra network. For example, it helps maintain the price stability of the stablecoins on the network.
Terra's Luna crypto coin versus Ethereum
Terra is another Ethereum competitor in the business of hosting blockchain apps. They're both benefiting from the boom in NFT and DeFi apps. In 2021, investors are making more money with Terra’s Luna coin than Ethereum’s Ether token. While Luna has shot up almost 4,500 percent since January, Ether has only gained about 350 percent during the same period.
Is Terra's Luna coin a good investment?
If you’re interested in Terra’s Luna coin price prediction, there's a high chance that you’re trying to gauge if this crypto could still be a good investment. Terraform Labs investors recently committed $150 million to help grow the Terra crypto ecosystem. For example, the project plans to use the money to encourage developers to launch their DeFi apps on the Terra platform.
The COVID-19 pandemic has accelerated the shift to online shopping. Therefore, Terra’s future looks promising with its focus on e-commerce payment. In addition to e-commerce, Terra will be offering tokenized stocks, which is another fast-growing crypto segment. Tokenized stocks promise to expand the access to the U.S. stock market to more global investors. People outside the U.S. can already trade tokenized versions of Tesla and other prominent companies.
As the network’s native token, Luna coin benefits from economic growth in the Terra ecosystem. In addition to price appreciation, Luna investors also receive a cut of the transaction fee generated on the Terra network. Therefore, Luna is among the cryptocurrencies that generate dividend-type income for holders.
Terra's Luna coin price prediction
After Luna's price recently hit a new all-time high and then retreated a little, investors want to know what the future might bring. The crypto’s gains over the past year have averaged 450 percent a month. Even if Luna's price is only climbing at the rate of 10 per month on a compounded basis, the crypto could reach $45 by the end of 2021.
Can Terra's Luna coin reach $100?
For the crypto to reach $100 in 2021, it will need to gain 35 percent per month on a compounded basis for the remaining period. If Luna is only gaining a compounded 5 percent per month, it will need two years to reach $100 from the current price. If growing at a compounded monthly rate of 10 percent, Luna's coin price could hit $100 in just a year.
The best way to buy Terra's Luna coin
If you like Luna's coin price prediction, you might want to add the crypto to your portfolio. Luna crypto hasn’t made it to a Coinbase listing yet, but you can buy the altcoin on Bitfinex and HitBTC with the U.S. dollar.