LUNA Price Prediction 2022

LUNA Adds More Than 13,000% to its Value in 2021

Terra is an algorithmic stablecoin platform that works on a Proof of Stake (PoS) blockchain infrastructure built with Tendermint. LUNA is the native token of Terra and is used in the issuance of stablecoins (TerraSDRs), as a price stability mechanism, and also for staking and network governance.

LUNA has been one of the best-performing cryptocurrencies in 2021. The coin has added more than 13,800% to its value over the past 12 months, outperforming most of the leading cryptocurrencies. As a result of its rally, LUNA is now the ninth-largest cryptocurrency by market cap.

At the start of the year, LUNA was trading at $0.65 per coin. However, it added nearly 14,000% to its value and is set to end the year trading above the $80 mark. LUNA can attribute its massive growth to the growing adoption of decentralized finance projects.

LUNA was rallying at the start of the year as the broader cryptocurrency market embarked on a Bull Run. It reached a high of $22 on March 19 before retracing below $14 over the next few months. LUNA’s performance picked up towards the end of August, with the price of the cryptocurrency reaching a then all-time high of $41 by October.

During those periods, the Terra blockchain was becoming home to some of the leading DeFi protocols in the space. Anchor is the leading DeFi project on Terra, and the TVL of the project grew from $540 million in April to currently stand above $8 billion.

The Terra blockchain also became host to other leading DeFi projects, including Lido, Astroport, Terraswap, Mirror, Stader and several others. On December 2, the total value locked (TVL) on DeFi protocols on the Terra blockchain hit $11.9 billion. The milestone led LUNA to hit a new all-time high above. It overtook Shiba Inu and became the twelfth largest cryptocurrency by market cap at the time.

The adoption of Terra DeFi projects continued, and on December 20, Terra became the second-largest DeFi blockchain. The total value locked on the Terra blockchain surpassed $16 billion, overtaking that of Binance Smart Chain in the process. Thus, resulting in Terra rallying past the $80 mark. Terra continued its growth, with the TVL on the blockchain now above $21 billion.

UST, the stablecoin of the Terra blockchain, was listed on cryptocurrency exchanges Binance and Huobi after it became the fourth-largest stablecoin by market cap. The addition of UST on Binance and Huobi served as a further catalyst for LUNA to rally higher, and it reached its current all-time high price of $103 on December 27.

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