The Terra price relentless bull run is accelerated as investors cheer the growth of its ecosystem. LUNA, its native token, is trading at $94.10, which is an all-time high. This means that it has surged by more than 21,000% this year while its total market capitalization has jumped to more than $34 billion. It is now the 9th biggest smart contract platform in the world.
LUNA rally goes on
Terra has had a spectacular growth in the past few months. The once-little-known cryptocurrency has jumped substantially this year.
There are several reasons that explain the remarkable comeback of Terra. First, its ecosystem has expanded substantially in the past few months.
For example, look at the Decentralized Finance (DeFi) industry. A closer look at DeFi Llama shows that there are now just 15 DeFi platforms built on Terra.
Yet, these platforms have a total value locked (TVL) of more than $19 billion. This makes it the second-biggest platform in the world after Ethereum. It is even bigger than Binance Smart Chain (BSc), which has more than 220 DeFi platforms that has a TVL of more than $16.3 billion.
Some of the biggest DeFi projects in Terra are Anchor, Lido, Terraswap, and Astroport. These top four DeFi platforms have a TVL of more than $1 billion.
Second, Terra price has jumped because of the popularity of TerraUSD (UST). UST is a fast-growing stablecoin that is backed against the US dollar. According to CoinGecko, the total market capitalization of UST has jumped to more than $9.3 billion. This makes it one of the biggest stablecoins in the world. The only ones that are bigger are Tether, Binance USD, and USD Coin.
Third, the LUNA price has jumped because some developers believe that it is a better alternative to Ethereum. Besides, it can handle more than 10,000 transactions per second (TPS). This makes it faster than Ethereum’s TPS of less than 20.
Terra price prediction
The daily chart shows that the Terra price has been in a strong bullish trend in the past few months. The coin has moved above the 25-day and 50-day moving averages. This is a sign that bulls are in control. Similarly, oscillators like the Relative Strength Index (RSI) and the MACD have been in an upward trend.
Therefore, the path of the least resistance for the LUNA price is to the upside. This means that the coin will likely keep rising as bulls target the next key resistance at $100. Still, we can’t rule out a situation where the coin retreats after it hits this psychologically important level.
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