Terra price forecast: Is now the right time to buy the LUNA token?

Terra LUNA/USD is an open-source network for algorithmic stablecoins. LUNA is the native cryptocurrency token that is used for staking, governance, and collateral for the network’s stablecoins.

Terra developments as a catalyst for growth

On January 6, we went over a report, where we saw that Terra grew quicker than Ethereum, alongside Solana and Polkadot.

The decentralized stablecoin issuer Terra posted a proposal towards expanding the interchain deployment of the TerraUSD (UST) stablecoin across five projects in Ethereum, Polygon as well as Solana.

The proposal, titled “UST Goes Interchain: Degen Strats Part Three” which was posted on Thursday by Terra Research, provided details about how $139 million of UST as well as Terra’s native stablecoin, LUNA, would get utilized and on what platforms the proposal is passed.

Within each deployment, Terra would deposit UST in different amounts that range from $250,000 to $50 million with the goal of boosting the stability of each of the partner projects.

A notable entry here is that the decentralized finance (DeFi) liquidity provider and market maker, known as Tokemak on Ethereum, would end up receiving a $50 million deposit in UST for six months if the proposal is passed.

The permissionless lending, as well as borrowing platform Rari Fuse, would also receive $20 million in UST for six months.

Should you buy Terra (LUNA)?

On January 7, Terra (LUNA) had a value of $73.14.

To get a better perspective as to exactly what this value point means for the Terra (LUNA) token, we will go over its all-time high value alongside its performance throughout the previous month.

In terms of the performance in December, on December 14, the token had its lowest value point at $52.75.

The all-time high value of Terra (LUNA) was on December 27, when the token reached a value of $103.34. This gives us an indication that the Terra (LUNA) token saw an increase in value of $50.59 or by 96%.

However, since then, the token has decreased to $73.14. This puts it at a solid point in time to purchase, as it has the potential to climb to $80 in value by the end of January.

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