The host of popular crypto analysis and market commentary show Coin Bureau says that $LUNA — the native token of algorithmic stablecoin platform Terra — could rally nearly 2-3X.
According to Binance Research, Terra is a Proof of Stake (PoS) blockchain. They also say that$LUNA is “used in the issuance of stablecoins (TerraSDRs), as a price stability mechanism, as well as for staking and network governance.”
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Work on Terra, which was developed by South Korean blockchain company Terraform Labs (founded in January 2018 by Daniel Shin and Do Kwon), started in January 2018, and the Terra mainnet launched on 23 April 2019.
According to a recent YouTube video, Coin Bureau’s host “Guy” told viewers that $LUNA is poised for a massive price gain.
Guy highlighted the benefits and growing popularity of Terra’s US dollar-based stablecoin, TerraUSD ($UST). He predicted increased usage of the platform could lead to $LUNA doubling or tripling in price, despite the crypto markets appearing bearish at present.
As reported by The Daily Hodl, Guy said:
The only thing that’s really holding LUNA back is its massive market cap. But the availability and popularity of UST means that LUNA might manage to squeeze out another 2-3x giving it a price tag of between $150 and $200.
Guy also noted that $LUNA has historically tended to pump when the rest of the crypto markets crash, which he attributed to the increased demand for the $UST stablecoin. He claimed the stablecoin had “safe-haven status,” which has been solidified by UST’s resilience during periods of market downturn.
Guy was also bullish on the development of Terra’s decentralized applications (DApps), which have driven even greater demand for $UST. According to Coin Bureau’s host, Terra had only one DApp less than a year ago, compared to over one hundred today.
In a video released on his very popular YouTube channel on 1 March 2021, Coin Bureau had this to say about Terra:
“Terra has found a unique way to mint stablecoins that are pegged to various fiat currencies in a decentralized manner. The circulating supply of Terra’s US dollar stablecoin, UST, has doubled over the last month and has consequently become one of the largest stablecoins by market cap.“
He went on to say:
“I think this is one of the most exciting cryptocurrency projects I’ve seen in some time and part of me regrets not covering Terra sooner. The founders are legit – Terraform Labs is constantly innovating, and a lot of progress has been made since the Terra mainnet went live in 2019.“
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.