After reaching a new all-time high in December 2021, will LUNA coin maintain such high value?
Contents
LUNA coin was created by the Korean firm Terraform Labs and launched on cryptocurrency exchanges in July 2019.
Terraform’s white paper, published in April 2019 states; “While many see the benefits of a price-stable cryptocurrency that combines the best of both fiat and bitcoin, not many have a clear plan for the adoption of such a currency.
“Since the value of a currency as a medium of exchange is mainly driven by its network effects, a successful new digital currency needs to maximise adoption in order to become useful. We propose a cryptocurrency, Terra, which is both price-stable and growth-driven.”
The coin was developed on the Terra blockchain as part of a dual-token system with the stablecoin TerraUSD (UST). UST is minted by burning LUNA, which gives LUNA its value and maintains the stability of UST.
LUNA coin’s price history
In 2019, LUNA launched at $1.31 but found itself on a downward trajectory for the first 18 months. Although it was not a volatile currency, there did not appear to be much hope for the new token.
After September 2019, LUNA kept recording new lows. It dropped to $0.21 on 18 December 2019, before dipping even lower to $0.12 on 18 March 2020.
On 19 August 2020, Terra announced LUNA would be listed on the exchange platform Binance. Users could stake their LUNA coins from 28 August and the price rose from the $0.33 mark in July to $0.56.
However, it wasn’t long before it dipped again. Despite UST launching in September that year, LUNA fell back to $0.32.
It was a gloomy outlook for the staking asset until the crypto boom at the beginning of 2021, when LUNA started behaving bullishly.
On 9 February, it reached $6.44 and climbed even higher over the next six months, hitting $34.96 on 28 August. The crypto market crash on 7 September saw it fall to $25.30.
Mainnet upgrade
However, the Terra blockchain’s Columbus-5 mainnet upgrade launched on 30 September 2021, at which point LUNA resumed its rise.
The upgrade introduced interchain assets on other blockchains. It also led to LUNA being permanently destroyed when burned, instead of being sent to a community pool.
After the upgrade, the coin hit a high of $49.45 on 4 October and continued its upward trend to a new all-time high of $54.77 on 8 November 2021. December was an exciting month for the coin as well, reaching another new all-time high of $99.72 on 26 December 2021.
Now ranked ninth among the top cryptocurrencies by market value, LUNA hit its all-time high recently and is currently trading at around $79.82. LUNA started 2021 priced below $1.
LUNA coin price prediction
But what is likely to happen in the upcoming months and years? This is what analysts are saying about the LUNA coin price prediction for 2022.
WalletInvestor predicts continuous bullish growth, its LUNA crypto price prediction for one year’s time is $210.96, and in five years’ time should be worth $176.82.
DigitalCoinPrice predicts LUNA will continue its uptrend through 2022, being worth an average of $113.61 for the year. There is a similarly positive long-term prediction for 2023 of $128.36. Its Terra LUNA coin price prediction for 2027 is $202.64.
EconomyWatch’s LUNA coin price prediction follows the same lines. It also predicts the coin will perform bullishly and will reach a valuation of $100 by 2025. The site argues that by 2030 more of society will be blockchain-based and this will result in LUNA being valued at $150.
FAQs
It might be. LUNA coin has been behaving bullishly this past year and analysts predict this trend will continue. The token has proven volatile, but such peaks and troughs could be attributed to external factors such as the crypto market crash.
Remember, this volatility is likely to continue as cryptocurrencies are not stable. You should never invest more than you can afford to lose.
Analysts’ response on the LUNA coin price prediction for 2022 is generally very positive. WalletInvestor predicts it will continue its bullish run, as does DigitalCoinPrice. Both sites believe it will reach a new all-time high in 2022.
DigitalCoinPrice’s LUNA coin price prediction for 2025 is $172.41. However, analysts can often be wrong, and you should always do your research before investing.
If you’re interested in buying LUNA coin, you can do so on Dzengi.com. Just remember to do your research and don’t invest more than you can afford to lose.
