Terra (LUNA) could be booming next year, as UST is now the largest decentralized stablecoin on the market
One of the biggest growth areas in the crypto space this year is undoubtedly the stablecoin market. after a report The Treasury Department’s submitted market capitalization of the largest stablecoin issuers has increased 500% over the past 12 months.
UST, one of the stablecoins in the Terra ecosystem, overturned DAI’s reign as the largest decentralized stablecoin by market cap, making it the top 21 crypto projects by market cap
The information available shows that the UST’s market cap is around $ 200 million in early 2021. However, it currently has exceeded $ 9.3 billion, which is almost 5x growth.
Aside from the fact that UST currently ranks first among decentralized stablecoins, it still lags behind more well-known centralized competitors like USDT, USDC and BUSD, who enjoy huge support from cryptocurrency exchanges; leading crypto companies like Binance, Circle and Bitfinex.
As an algorithmic stablecoin, UST uses tokens on the Terra blockchain to maintain its course against the US dollar.
Because of the exponential growth of stablecoins, regulators around the world, such as Japan and the United States, are increasingly concerned and concerned about the activities of the institutions that issue them. Authorities in the United States have stated that only insured depositaries can issue stablecoins. However, this view is rejected by the crypto community when wondering why large stablecoin issuers are not being granted banking charter.
Terra (LUNA) explodes in 2022
Analyst Michaël van de Poppe is digging through the charts to find out where Terra (LUNA) will go when the crypto market enters the new year.
In a new strategy meeting, Van de Poppe to speak that he’s impressed by the strength of Terra among other successful Layer 1 altcoins.
“LUNA is currently one of the strongest assets in the crypto market. Not only LUNA, but also AVAX (Avalanche), MATIC (Polygon) run very well. All Layer 1 projects and projects comparable to Layer 1 are doing well and showing strength, while Bitcoin shows a general weakness. ”
Van de Poppe first examines where Terra is in the current market cycle before making a forecast for the next stage.
“If you look at the price movement, Terra / LUNA is picking up speed pretty quickly. Where is it in the current cycle? It’s most likely somewhere in the pre-race period (similar to February 2021). Such a consolidation phase is in some ways similar to what is happening now or the upcoming price action in which the price is continuously moving upwards. ”
During the February 2021 consolidation, LUNA traded between $ 5 and $ 8 before shooting to $ 22 in March.
Van de Poppe moves on to LUNA’s higher price target for 2022 and names two important levels that he believes are achievable.
“When such a correction comes to an end, Fib expansion could be considered – starting from previous lows and highs, where we can start targeting two levels at $ 125 and $ 200, respectively, as long as the trend remains up. If that’s the case, we could see this bull run. ”
Source: Michael van de Poppe
LUNA is currently trading at $ 91.46, which is ranked 9th by market cap after rising 12.43% in the past 24 hours.
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