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The Terra Luna price has pumped 10% within a few hours on July 18th.
The Terra Luna price action has pushed the token to the top of the CoinMarketCap 'trending cryptocurrencies' list. Investors are rushing in to buy Terra Luna at what could be the bottom price of one of 2022's most lucrative cryptocurrencies.
With an existing developer base and the best UX's in crypto, there are many reasons to buy Terra Luna in July 2022.
In this article, we'll analyse the Terra Luna price and look at 5 reasons to invest in Luna.
The price of Luna found support after falling to $1.65 just five days ago and has rallied to a price of $1.9 today.
$1.65 is currently the all-time low price for Terra Luna.
The all-time high came right after the initial airdrop of Terra Luna tokens at the end of May. Luna quickly rose to a price of $19 according to the Binance exchange, before falling steadily ever since.
Few cryptocurrencies start life like Terra Luna.
Following the dramatic collapse of the previous Terra Luna ecosystem (primarily the former Terra Luna and TerraUSD cryptocurrencies) the new Terra Luna token was launched as Terraform Labs stepped back completely from the project.
Compare this with the launch of one of 2022's most promising altcoins, EverGrow.
EverGrow launched late last year with a clearly defined roadmap outlining the precise steps the cryptocurrency would take: listings on large exchanges like DigiFinex; the launch of its NFT marketplace LunaSky; the content subscription platform Crator; a metaverse experience with The Abstract; staking pools; an EverGrow swap platform; and more.
Furthermore, EverGrow went further than most cryptocurrency projects by naming all the core team and publishing their wallets.
EverGrow even outlined how the core team earn their salaries – through the ground-breaking BUSD reward mechanism that sees 8% of each $EGC buy/sell order distributed to each investor according to their holding size.
The transparency of EverGrow is a great contrast to the mystery of Terra Luna.
The roadmap of Terra Luna is currently entirely in the hands of the decentralised network of developers deciding to build on the network. No one central team oversees developments. The Terra website says 'the new Terra blockchain' is one of the most 'decentralised chains ever launched'.
But will this benefit a Terra Luna investment long term?
1. Existing developer base. While the new Terra Luna may not have a clear roadmap, it has a vast network of developers and validators currently building its future. In the past week, these developers succeeded in a series of new updates on Terra Station mobile: a new dashboard, a means to vote on governance proposals, a means to manage NFT assets, interaction with smart contracts, colour themes, and more.
2. Decentralised network. If cryptocurrencies are supposed to be about decentralisation, then Terra Luna is one of the realest crypto projects currently on the market. A huge 70% of LUNA was airdropped to the community in late May – Solana meanwhile has as much as 48% of the SOL supply held by the development team and VC purchased tokens, Binance as much as 50%, Avalanche as much as 42% and Near Protocol as much as 38%. With the community in control of all funding it makes the new Terra Luna network uniquely decentralised and democratic.
3. No more algorithms. The Terra Classic blockchain was built around the algorithm that maintained TerraUSD's $1 peg and the price of Luna (now Luna Classic). That algorithm is not present in the new Terra ecosystem – in fact, there is no stablecoin as of yet. Few crypto projects launch with such a well-known name and an existing base of developers.
4. Determination. The large existing Luna holder base who lost funds in the Terra Luna and UST collapse will continue to receive new Terra Luna tokens over the next two years. Many disaffected investors are intent on regaining their losses – some of which totalled over six figures. These investors will be bullish on Luna projects and willing to hold onto tokens until prices are positive for selling.
5. Quality protocols. Pre-existing protocols are getting ready to launch on the Terra 2.0 network. These include Prism Protocol, Sigma Finance, Nebula Protocol and Astroport – a leading decentralised marketplace.
The immediate risks of investing in Terra Luna are clear: the project failed dramatically in May.
Around $40 billion in value was wiped from Luna (now Luna Classic) and TerraUSD (TerraClassicUSD) during the catastrophic collapse earlier this 2022. While the stability of the algorithmic stablecoin UST (now USTC) was arguably to blame for the collapse, there are reasons to be wary about Terra 2.0.
The lack of a roadmap also makes any Terra Luna investment speculative right now.
Compare this with analysing the potential ROI from EverGrow. The EverGrow website comes with a range of calculators to help investors get an idea of the ROI they can expect from the BUSD rewards (BUSD rewards are 8% from a total 14% transaction tax on all EverGrow buy/sell orders).
For example, a $1000 investment in EverGrow today buys you $EGC 6.8 billion (current EverGrow price: $0.000000146). Using the Sleek Finance calculator (not official) $EGC 6.8 billion would give you a monthly BUSD passive income of $6.24 with daily trading volume at a current $170,000.
But when a bull market returns and daily trading volume gets back to the 2022 peak of $12 million, you could be earning $440 in a month if trading volume remains that high for 30 days.
Not sure if daily trading volume will remain high? Just look at the EverGrow Utility Progress Report to see the LunaSky NFT marketplace is 92% finished, while the Crator content subscription platform is 72% finished. Other utilities on the roadmap include the EverGrow Exchange (30% finished) and the EverGrow Metaverse experience (20%) finished.
You can get video updates on each of these utilities on the official EverGrow Twitter.
While the Terra website is stunning, and the UX experience second-to-none, there's no roadmap to check progress or means to get a handle on ROI.
Terra Luna has the potential to get its place back in the crypto top 20.
However, none of this is a given. There's a good chance that pre-existing Terra dApps, protocols and exchanges will win huge trading volume and boost the Luna price throughout the rest of 2022 – but it's only a chance for now.
Terra Luna also needs to win back investor confidence after becoming synonymous with the crypto crash that started in May 2022 and brought down even leading projects in the industry.
If Terra Luna is a good buy in July 2022, that's based on speculation.
The Terra Luna price is pumping in mid-July and it looks like the bottom is in. An investment right now could well go on to provide a good return, but there are risks of going all-in on Luna or making it your largest position.
With this in mind, it's worth checking out other small market cap cryptocurrencies like EverGrow ($60 million market cap) that arguably have greater potential to make huge ROI for investors. EverGrow simplifies the investment process and helps to instil greater confidence while not foregoing the chance to grow exponentially as it gains wider exposure and adoption.
