Luna Price Prediction 2022
Our current Luna price prediction for 2022 is bullish for the Luna ecosystem, above the current price of $50. Note, this is not financial advice and markets are volatile, so consult with a professional financial planner before purchasing cryptocurrency. Luna has experienced tremendous growth in 2021 and will continue due to:
- Stablecoin Support and Continued Growth
- Deflationary Tokenomics – Over time, there will be less Luna, increasing scarcity and price
- Easy to use DeFi – Gain passive income on crypto
Stablecoin Support with Terra UST
Before I dive deep into this Luna price prediction, let’s start with the fundamentals. Luna is an open-source blockchain platform that also hosts algorithmic stable coins, such as UST, that are pegged against traditional flat with an equal amount of corresponding cryptocurrency, ie Luna. We have discussed why UST is the best stablecoin, but Luna is a versatile token in the network that is extremely important in the rise of the Terra platform as well.
It (Terra) has scaled a new all time high around $100 on Christmas day, 2021, moving proportionally with other coins and it is not the second biggest total value locked DeFi network after Ethereum. Currently, the TVL is around $15 billion USD.
What Makes LUNA Unique?
- Staking helps secure the network when you stake it and earns 10.8% annual return
- LUNA is deflationary , which means that decrease in supply could drive prices up
- The more UST is in demand , the more valuable LUNA becomes. The Crypto Market has been really volatile but Luna has absolutely been crushing it.
Luna is created when Terra is burned, and vice versa. This makes Luna more scarce as stable coins grow in popularity. Luna is rising is the “massive LUNA burn” Terra initiated it’s pivotal Columbus 5 software upgrade which brought about the change of burning all seigniorage Since Columbus 5 passed 88,675,000 LUNA from the community pool was set to burn which reduces LUNA supply and mint new UST. LUNA supply declined quickly About 8 Million LUNA was burnt for 9 straight days Around $4.5 Billion of LUNA has been burnt and the supply has reduced and this a very big reason why LUNA has risen rapidly. In addition when LUNA is burnt UST is minted and so UST has also shooting up in terms of market cap
Powerful DeFi Features
DeFi is becoming huge because of it’s potentials to generate passive income. One of the major changes with Columbus 5 was an increase in staking rewards ,the rewards have increased to 9% an increase in staking rewards makes LUNA more attractive to hold which creates more demand for the token. And when you combine the Deflationary Supply from the massive LUNA burn with the increase Demand For LUNA due to higher staking rewards you have 2 forces driving the prices Up. The Third Reason LUNA Is rising is “Adoption” Interoperability, so terra is built on cosmos and one of the major changes from Columbus 5 was the star gate upgrade which enables cosmos block chains to communicate with each other and become interoperable which means that Terra stable coins can more easily be used across different eco systems.
Luna Yield Farming
The upgrade also boosts terra’s transactions per second by 33x making it a much more suitable platform. The most important thing a layer one crypto platform needs in order to succeed is to have developers building applications on the platform. Positive adoption metrics are also pointing up which shows that adoption is increasing. Another reason is the Budding Ecosystem there are a few high profile projects that are just getting started on Terra.
With all these points combined are creating more and more adoption on Terra. It’s clear that the LUNA price prediction can easily reach the top 5 cryptocurrency market caps. Ethereum’s Market cap has skyrocketed growth overall with stats going only up and shows great signs of continued prominence as time goes by.
Further Luna Reading and Content Producers
Many producers do not focus on making a Luna accurate price prediction, rather they cover the ecosystem as a whole and how to gain yield on it. Here are some of my favorite Luna/Terra producers. Check out our DeFi Passive Income Yield Farming Guide too!