Imagine a world where cryptocurrencies are used as fuel for everything. This is the future of cryptocurrency, and Terra (LUNA) is leading the charge. The creators’ vision for an all-inclusive decentralized currency has been realized with over 10 million coins sold in just under four months from its ICO launch date on October 1st 2017.
Terra is a cryptocurrency that has recently seen a rise in price. The “luna crypto price” is the current price of Terra, which can be found on CoinMarketCap.
Terra, a blockchain project, and its native coin, LUNA, have swiftly risen to the forefront of DeFi. It’s the fifth biggest blockchain project, following closely behind Avalanche, with over $1.9 billion in TVL.
With many big fundamental changes ongoing, the price of LUNA has risen by more than 50% in the last week, with industry insiders predicting that this is only the beginning of a huge bull run in the coming weeks.
What’s the story behind LUNA’s massive rally?
Following Bitcoin’s big decline last week, which brought it perilously near to its coveted $50,000 resistance levels, the rest of the market followed suit. However, the big downward pressure does not seem to have harmed LUNA, the Terra blockchain’s native coin.
The Layer-1 blockchain platform has moved fast from the periphery of DeFi to the front, riding a wave of enthusiasm for its revolutionary stablecoin offerings. Users may exchange their LUNA tokens for a number of stablecoins tied to various fiat currencies on Terra. Because minting $1 worth of UST necessitates the combustion of $1 worth of LUNA, a growing supply of stablecoins on Terra reduces the circulating supply of LUNA, enhancing its value.
Over 3.2 million registered accounts and 15.3 million UST in tax benefits have been awarded in the last year as a result of this simple idea.
The Terra community approved a proposal earlier this month to burn 88.7 million LUNA tokens, which were valued around $4.5 billion at the time. The burn was started with the goal of minting between 4 and 5 million terraUSD (UST), which experts say would increase interest in Terra.
And it worked: the token’s price has risen by more than 50% in the past week, thanks to a flood of fresh proposals due to be accepted by the community.
Terra’s pricing graph from October 1st to November 30th, 2021. (Source: TradingView )
The ultimate objective of all of the suggestions that have lately been filed is for UST to become the go-to interchain stablecoin. This method will begin with a 6-month incentive scheme via numerous Terra applications to increase UST liquidity on Curve Finance, Ethereum’s main AMM for stablecoin swaps.
1/ A new proposal has been filed on Agora to greatly enhance $UST liquidity on @CurveFinance pools through a 6-month incentive scheme including @VotiumProtocol, @ConvexFinance, and @TokenReactor.
— Terra (UST) — Terra (UST) — Terra (UST) — Terra (UST LUNA (@terra money) (@terra money) (@terra money) (@terra money) (@terra money) (@terra money) (@terra_
The annualized staking return for the token has grown from 4.61 percent at the beginning of November to 10.74 percent at the conclusion of the month, thanks to all of the prior LUNA burns.
From November 1st to November 30th, 2021, a graph depicting the yearly staking yield for LUNA is shown (Source: Terra Dashboard)
According to Nicholas Flamel, a prominent member of the Terra community, the price of LUNA is set to rise considerably higher in the coming weeks.
“The Terra economy is booming,” he said. “I’m very certain we haven’t seen anything yet.”
The Terra community and development team, according to Flamel, expect UST to reach $10 billion in market valuation by the end of the year. The Terra ecosystem is poised to go parabolic, since minting 1 UST takes burning $1 worth of LUNA.
“This implies we’ll need to buy/burn $2.5 billion in LUNA during the next four weeks.” This is significant. I’m not sure we’ve ever seen such intense purchasing demand on a currency.”
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