Terra (CCC:LUNA-USD) is an altcoin seeing a lot of curious eyes right now. The coin, which dubs itself “programable money for the internet,” is driving internet investors crazy with new highs. It appears that the coin, made popular for its DeFi capabilities, is becoming a tool of choice for building passive income. An influx of buyers is helping drive LUNA to new all-time highs, and investors are seeking out Terra (LUNA) price predictions to see what the future might have in store.
Terra is a DeFi network that seeks to have an ecosystem of synthetic assets, which monitor the prices of real-world fiat currencies. Essentially, the network creates a whole class of stablecoins that can be used by any user on the blockchain; one can use these to conduct transactions across a number of different chains, thanks to Terra’s network of bridges.
LUNA is the essence of this process. While not a stablecoin itself, Terra users can swap their LUNA to synthetic stablecoins when the price rises above their peg, allowing them to profit, while also expanding the pool of the stablecoin so it deflates back to its peg. Likewise, stablecoin owners can swap their synthetic coin for Luna when the price falls below the peg.
The model is very innovative, and it speaks to the many different applications of decentralized finance, or DeFi. And as DeFi continues to grow more and more popular among investors, Terra’s LUNA is becoming one of the most sought-after cryptocurrencies.
As such, Terra’s LUNA is reaching all-time highs. Today, the coin surged above $34, the highest it’s ever been. It currently rests at a price of $32.44.
Terra (LUNA) Price Predictions: Will LUNA Keep Up the Pace as DeFi Heats Up?
As DeFi continues to infiltrate the mainstream, Terra will be one of the most ubiquitous of DeFi products. It is currently the twelfth-largest cryptocurrency in the world by market capitalization. Will it continue to keep up its pace of growth in the coming months? Let’s take a look at some Terra (LUNA) price predictions:
- WalletInvestor forecasts a price of $43.66 for LUNA by August of 2022.
- DigitalCoin’s prediction for LUNA suggests a price of $47.89 by the end of this year.
- The Economy Forecast Agency is one of only a few outlets predicting losses for the DeFi giant. Their year-end prediction for Terra’s LUNA is $27.28.
- Gov Capital has one of the most bullish predictions for the coin. By August of next year, the outlet thinks LUNA could be worth $61.62.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.