Stablecoins are an essential part of the crypto ecosystem, especially among those interested in building robust portfolios of many different digital currencies. By having fiat-pegged stablecoins, investors can put their money into assets sourced from a variety of different exchanges; of course, all of these exchanges have different requirements for trading. Terra (CCC:LUNA-USD) presents investors with an appealing solution for stablecoin trading, and investors are increasingly taking notice of the network. With a new coin burning event about to take place on the network, LUNA prices are reaching all-time highs. As such, Terra price predictions are a hot topic.
Through the Terra network, users can swap their LUNA for a wide variety of stablecoins, all pegged to different fiat currency values. The range of options all aggregated to the network make it a one-stop shop for investors who might need a slew of different stablecoins to add assets from multiple different exchanges.
As LUNA is used to increase the supply of Terra stablecoins, its circulating supply decreases; as a stablecoin’s supply needs to decrease to remain stable, the supply of LUNA increases. Therefore, the circulating supply of LUNA and its other stablecoins is always fluid. Now, developers want to help boost the values of LUNA by permanently reducing the total supply.
Terra Price Predictions Surge on Coin Burning Proposal
A proposal by Terra founders to burn nearly 89 million LUNA passed with massive backing by users. On Tuesday night, the burn began with the removal of 520,000 LUNA. This huge reduction in supply is already helping to bolster the coin’s prices. Indeed, this week is seeing LUNA reach all-time high levels of $54.77.
Terra is a network with a strong base of supporters already; its model of business turns a somewhat annoying process in crypto arbitrage into something very convenient. And with the ever-popular coin burning mechanism taking shape, the sky appears to be the limit for LUNA values.
Let’s take a look at some Terra price predictions to see just where analysts think the coin will go in the future:
- DigitalCoin’s year-end forecast for LUNA prices the coin in at $75.77.
- CoinForecast’s 28-day prediction calls for losses, expecting LUNA to drop by about $10 heading toward the end of the year.
- WalletInvestor’s 12-month prediction is quite bullish. It expects prices to nearly double over the next year. The site’s November 2022 price target comes in at $95.93.
- Similarly, Gov Capital’s November 2022 prediction calls for a price of $91.10.
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.