• Home
  • Cryptocurrencies
  • Terra (LUNA) Is Undervalued, Could Easily Double And Be Top Ten EOY Says PrimeXBT Analyst Kim Chua

Terra (LUNA) Is Undervalued, Could Easily Double And Be Top Ten EOY Says PrimeXBT Analyst Kim Chua

LUNA, the native token of the Terra blockchain, has been gaining traction with great speed.
| Zoe Mende

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 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.

Artículos Relacionados


Más Articulos

solana hack

Solana’s SOL Token Gains Despite Hack

Early on Wednesday, Solana’s SOL token managed to hold on to a crucial support level despite a multi-million dollar platform attack that caused so…
coinbase

Coinbase rises strongly by offering staking 

Coinbase Global (COIN 7.22 percent) jumped as much as 11 percent and was trading 10.6 percent higher. Tuesday saw the crypto market turn bullis…
M2 - crypto

Cryptocurrency M2 Money Supply

It may seem paradoxical that the movement of cash and the price of bitcoin (BTC-USD) are related, but historical evidence tends to indicate that t…
(Visited 22 times, 1 visits today)
© Cryptopress. All rights reserved.