LUNA, what about the future?
While the crypto market is down 1.4% in the last 24 hours, Terra Project's LUNA token has outperformed it by a wide margin. In the same time frame, the token has lost more than 20% of its value.
If the crypto market hesitates for a few days, the LUNA coin will crash. It just erased a mid-December bull run in a matter of days.
While Bitcoin and the entire crypto market seem to have reached their maximum range, the LUNA token lost 20% of its value overnight. The graph below, available on the Coinmarketcap portal, shows the price of LUNA for the last three months:
The coin, which was trading at $43 at the end of October, experienced several weeks of volatility before rising in the last week of November. It will be as close to the $80 mark before the first correction to $55. Today is December 14 and the coin is resuming its positive trend. This is a dynamic that will see the price of the coin break above $100 shortly before the start of the new year. On December 27, 2021, the highest trading price of the token was $103.33. The project has lost more than half its value since its heyday.
This trend has increased in recent weeks, especially today. The project has lost more than a third of its market capitalization in the last seven days. Despite the drop on the day, the project remains in the top 10 of the largest market capitalizations in ninth place. At the time of writing, the cryptocurrency is now selling for just over $48.
Generally speaking, the health of the entire crypto market is directly related to the rapid rise or fall of a coin. Especially the evolution of the price of Bitcoin. However, this is clearly not the case here. In fact, the crypto market has lost around 1.5% in the last 24 hours, while the price of Bitcoin has only lost 0.26%. The coin does not seem to have moved at the same rate as the major cryptocurrencies in recent months. Terra was the only project to go public in the last days of December, when the cryptocurrency market underwent a major correction. Therefore, the day's decline may be due to profit taking or panic selling by some investors.
Regardless, the TVL (Total Value Locked) blocks in the protocol decrease as the value of the token evolves. According to statistics from the Defillama platform, the TVL of the Terra project will fall by 15.47% to 13.7 billion dollars. The TVL of three projects on the Terra blockchain dropped by more than 30%. Here are the items:
The ANC token of the Anchor project, the leading Terra project on TVL, lost more than 13% in the last 24 hours. The sudden drop in TVL is worrying. However, should this be interpreted as a loss of user confidence? Over the next few weeks, there will be some elements of the answer.
According to some experts, this fall could be an exciting time to join the Terra project. In any case, this does not mean that the principles of the project are questioned.
According to prediction algorithms, optimism reigns supreme. Therefore, the WalletInvestor platform predicts that a token will be worth more than $180 in the next 12 months. In the long run, this trend seems to be very favorable for the project. DigitalCoinPrice and TradingBeasts also appear to be bullish, albeit to a lesser extent. In the long term, both platforms have bullish forecasts.