TERRA LUNA the Russian invasion has caused a huge price drop in the market but several tokens such as remain unaffected and are rising like rockets in the sky.
After the Russian president declared war on the European country,Ukraine,several major coins are experiencing a quick fall of about 15%.
However,when the market gained its stability by Friday morning,it was seen that TERRA LUNA has lost the least and has experienced a gain of 28% from Thursday morning to Friday.
LUNA comes out as the only major stock that has got again in its value amidst this Russia-Ukraine war.It is up 31% from last Friday morning’s price.
The price chart analysis depicts that TERRA LUNA before reaching its resistance could continue to reach $69.It was revealed that the prices are cooling as the asset approaches “overbought “ levels when the RELATIVE STRENGTH INDEX reached 72.
Why is TERRA surging?
Firstly,terra being a strong competitor to Ethereum has granted great incentives to attract investors to its Defi ecosystem and increased demand for UST. It is believed that terra will continue its surge even if the incentives get exhausted.ETH might be having the largest Defi protocol,but the TERRA still stands out as its ecosystem already comprises 13 Defi protocols that were built on it in a very short period.
Terra’s “burn mechanism” makes another big factor for its surge.This burning is done to create scarcity of the asset and hike its price.
IS IT THE RIGHT TIME TO INVEST IN TERRA LUNA?
Terra is seen making great hikes in the cryptocurrency markets.For some investors,market volatility is seen as a turn-off point though this is the primary digital currency’s characteristic.Terra emerges as a hero as it has got the potential to stand out from some major cryptocurrencies.
FUTURE OF TERRA LUNA
There are several initiatives for terra blockchain and its betterment in the coming times.The best one is the COLUMBUS 5 update.The Columbus 5 catalyzes LUNA token burning and enables the terra blockchain’s operation with the IBC protocol i.e. Inter-Blockchain Communication.This will lead to Terra’s better operability and a wider market for such stablecoins.
The other changes by the terra development team should be more strong and should be associated with the other Blockchains.The increase in the number of Terra-compatible blockchains automatically increases its probability of demand amidst other crypto-currencies.
Terra luna stands at its peak among all the other cryptocurrencies with just three applications. It is expected to add more than 50 more projects to Terra in the coming times, such as Loop,a decentralized exchange similar toUniSwap on Ethereum.
PRICE PREDICTION 2022-2025
Terra was introduced by Terraform Labs in 2018 with the aim of price stability and usability in the crypto world; it forms the major part of the terra ecosystem. It is indicated by its price projections that terra will emerge as the king of this crypto world. Nevertheless, past prices of virtual currencies do not always depict their future prices.