Decentralized finance — or DeFi — is rapidly growing in the crypto space. Of course, when one has a robust portfolio of crypto assets to their name, why not use DeFi in order to grow those assets? One network that is getting a lot of love right now from investors is Terra (CCC:LUNA-USD). The Terra protocol allows users to mint USD-pegged stablecoins, and to convert those stablecoins into LUNA when appropriate, in order to secure a profit. But beyond the flagship protocol, there are plenty of projects under the Terra umbrella that attract investors. Now that the network is growing in size, investors are seeking out Terra (LUNA) price predictions.
Terra is booming in terms of both LUNA prices and transaction volume recently. Since the beginning of December, LUNA has gained over 50% — from $57 to $88. The coin now has an impressive market capitalization of $74 billion.
This growth has made Terra all but unavoidable to crypto buffs. The network is breaking the top 10 largest cryptos in the world today. But even more impressive is the milestone the DeFi ecosystem is reaching today, putting it above one of the largest crypto monoliths in the market.
Terra (LUNA) Price Predictions Get White-Hot as Terra Passes Binance Smart Chain in Value Locked
This relatively average Tuesday for the market is a huge day of celebration for users of Terra. Indeed, the platform is passing Binance’s (CCC:BNB-USD) Smart Chain in terms of total value locked (TVL). The news is spurring increasing interest in Terra (LUNA) price predictions.
TVL is one of the best ways to judge the health of a network. When one has a high TVL, it means lots of users are embracing that network’s services. And, it shows that they’re putting large quantities of assets into the protocol, meaning there’s a healthy level of trust between the platform and its users.
Today, Terra is passing $18.2 billion in TVL across its 13 different products. For reference, Binance has 225 products in its DeFi ecosystem, and a TVL of $16.5 billion. And while Terra can celebrate its milestone, it is still only the second-largest DeFi ecosystem in the world; in first place is Ethereum (CCC:ETH-USD), which has a whopping $152 billion in TVL.
The news is giving Terra’s LUNA coin a healthy boost. The coin is up 10% on the news, trading now at $88. So, where will Terra go from here? Let’s look at some Terra (LUNA) price predictions and see where analysts expect the coin to go:
- At the end of 2022, DigitalCoinPrice expects LUNA to trade at over $140.
- WalletInvestor forecasts a price of $177 for the coin by the end of next year.
- Gov Capital is targeting a value of $134 for LUNA in the next 12 months.
- Trading Beasts is the least bullish on LUNA, expecting the coin to trade at just $94 by next December.
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.