Cryptocurrency channel Coin Bureau host Guy says the popular Ethereum (ETH) rival could rise up to three times its current price.
Guy told his 1.92 million subscribers in his new video that Terra (LUNA) can start a rally. According to Guy, the rally will primarily be driven by the popularity of Terra’s USD-pegged stablecoin, TerraUSD (UST).
“The only thing really holding LUNA back is its massive market cap. But the availability and popularity of UST could benefit LUNA.”
According to the Coin Bureau server, LUNA is bullish when the rest of the crypto market is bearish.
“Also, Luna tends to rise when the crypto market crashes, and this is probably due to increased demand for UST, which is currently on almost a dozen blockchains and is traded on most major exchanges. Presumably LUNA’s price action is driven by demand for UST.”
Guy says one of the factors driving demand for UST is the decentralized nature of the stablecoin.
“For starters, UST has stablecoin credibility status, something that is cemented by UST’s ability to hold steady during market downturns. This is not something other stablecoins have managed to do… Now Terra’s DApps [decentralized apps] are actually the primary demand driver for UST, especially the Anchor Protocol [savings platform], which has received praise from almost every smart contract crypto project it happened. Less than a year ago there was only one DApp on Terra. Today there are more than 100. Another major demand factor for UST is regulatory concerns regarding centralized stablecoins in the United States, which has increased significantly since last September. As a result of this and other factors, almost 10 billion UST have been issued since September alone.”
LUNA, which currently has a market cap of just over $19 billion, was trading at $48.88 at the time of writing. TerraUSD is currently ranked 15th with a market cap of $11.3 billion.
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