Terra (LUNA) Undervalued, Could Easily Double and Be Top Ten EOY – Analyst says

LUNA Price Analysis2
LUNA Price Analysis2

Terra (LUNA) Undervalued, Could Easily Double and Be Top Ten EOY – Analyst says: LUNA, the native token of the Terra blockchain, which is also needed in the issuance of their native stablecoin, UST, has been gaining traction with great speed. It has become particularly popular amongst the more well-heeled investors who have increased the use of the UST stablecoin by ten-fold this year, from around $182 million at the beginning of this year to over $2.3 billion as of current.

Looking at the TVL of $7.7 billion on the Terra ecosystem, LUNA seems really undervalued at its current market cap of only $14 billion. This could easily be worth $20 billion, believes PrimeXBT analyst Kim Chua.

LUNA has grown over 2,000% since the start of this year and part of this is because of the boom in DeFi.  Terra operates like a fully digital, decentralized financial institution. It has its own kind of central reserve. Its customers can earn interest on their assets, spend them through its payment system, and even invest in synthetic stocks. And the token, Terra (LUNA) underpins much of what the company does.

With its Columbus-5 (COL-5) upgrade set to go live on Sept 9, the market would be more excited about this blockchain and the interchain support it promises to provide that could see it integrating with other popular blockchains like Polkadot and Solana.

On top of interoperability, the COL-5 upgrade also starts burning LUNA tokens, which will remove some LUNA from circulation forever, a bit similar to what EIP-1559 is to ETH.

Hence, fundamentals support a chart that is quite bullish, with a bull flag breakout for LUNA as its recent high of $35 has been breached. The phenomenal run we have seen in August could repeat again in the coming months with the potential to send the price of LUNA into the $70s and have it break into the crypto top ten before the end of this year.

About Kim Chua, PrimeXBT Market Analyst:

Kim Chua

Kim Chua is an institutional trading specialist with a track record of success that extends across leading banks including Deutsche Bank, China Merchants Bank, and more. Chua later launched a hedge fund that consistently achieved triple-digit returns for seven years. Chua is also an educator at heart who developed her own proprietary trading curriculum to pass her knowledge down to a new generation of analysts. Kim Chua actively follows both traditional and cryptocurrency markets closely and is eager to find future investment and trading opportunities as the two vastly different asset classes begin to converge.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Financial Watch. Every investment and trading move involves risk. You should conduct your own research when making a decision.

About Sam Gabriel 1699 Articles
Samson Gabriel a graduate of mass communication from Auchi Polytechnic, he is a passionate writer with experience in radio scrip writing. He brings his experience from the broadcast media into play here as he continues to enjoy his passion as a journalist. He can be contacted via whats-app on: +234701105670

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