According to the market analysis -->>>
Terra (LUNA) might also go up to $40 to $50 approximately or even more in the next 4 to 5 years, as it is recognized for its Algorithmic stablecoin system, which maintains price stability without relying on traditional collateral.
LUNA is used to stabilize stablecoins like UST (TerraUSD).
- Through an algorithmic mint-and-burn mechanism, when the price of UST rises or falls, LUNA is burned or minted accordingly to restore the peg.
- The system offers decentralization and scalability compared to fiat-backed stablecoins.
- UST is widely adopted in DeFi applications, particularly through the Anchor Protocol, where users can earn high yields by staking stablecoins.
While Terra offers a flexible, decentralized alternative to traditional stablecoins, it also faces risks from market fluctuations and scalability challenges.
(Please always do your own research)