LUNA Price Prediction 2022
The decentralized finance space is one of the biggest winners this year. A recent report by The Block revealed that the total value locked (TVL) in DeFi protocols rose by $100 billion in 2021. While Ethereum remains the leading DeFi blockchain, Terra is perhaps the biggest winner in the space.
Terra’s TVL rose to over $20 billion this year, and it is now the second-largest DeFi blockchain, surpassing the likes of Binance Smart Chain and Solana. Its native token, LUNA, has also added thousands of percentages to its value over the past year.
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.
What will the Market Hold for LUNA in 2022?
2022 is expected to bring big things for the decentralized finance space, and Terra will benefit in the process. Market experts are confident that Terra and its native token LUNA will play a huge role in the DeFi space next year.
Pantera Capital CEO Dan Morehead recently told CNBC that he believes Terra is one of the most promising alternative coins for 2022. He said, “It’s growing at a very rapid rate. We think it’s one of the most promising coins for the coming year, so many people are just starting to discover it and just starting to trade it.”
Morehead is a big fan of Terra and believes the project has so much to offer. Earlier this year, he said, “Terra is beginning to gain traction in the South Korean gaming market, and that’s one of the leading markets for gaming in the world, and so it’s starting to broaden out from stablecoins to much more interesting things.”
LUNA’s Technical Forecast for 2022
The LUNA/USD chart is one of the most bullish in the cryptocurrency market. The coin has added thousands of percentages to its value over the past year and could look to build on that in the coming 2022.
LUNA is currently up by more than 100% from its 200-day moving average price of $35, indicating that the coin has been performing well over the past few months. The MACD line has stayed above the neutral zone since August. Even when the broader cryptocurrency market was underperforming, LUNA was performing excellently. The RSI of 63 shows that LUNA could be heading to the overbought region soon.
LUNA is expected to perform excellently in the coming year. According to WalletInvestor’s 2022 forecast, LUNA’s price will surge by nearly 150% to reach $200 by the end of next year. By reaching $200, LUNA’s market cap could top $180 billion and cement its position as one of the leading cryptocurrencies in the world.
Regardless, it would be exciting to see how LUNA and the broader DeFi space perform over the coming year.