Coin Bureau Projects A 3X Rally For Terra (LUNA) Driven By UST Popularity

Coin Bureau predicts an incoming rally for Terra (LUNA). According to the show host, Guy, LUNA price could go up nearly 3X from its current levels.

In a recent video update, the crypto analyst explains the reasons behind his bullish prediction for the Ethereum competitor.

He makes a case that the main catalyst for the rally is the popularity of Terra’s US dollar-pegged stable coin, TerraUSD (UST).

“The only thing that’s really holding LUNA back is its massive market cap. But the availability and popularity of UST means that LUNA might manage to squeeze out another 2-3x giving it a price tag of between $150 and $200.”

Guy says that LUNA has a tendency to go up when the rest of the crypto market is going down.

“What’s more is that Luna tends to pump when the crypto market crashes and this is likely due to the increased demand for the UST stablecoin, which now exists on nearly a dozen blockchains and is trading on most major exchanges. If that didn’t give it away, LUNA’s price action is driven by the demand for UST.”

One of the reasons behind UST demand is the stablecoin’s decentralized nature, the analyst explains.

“For starters, there’s the safe-haven status of UST as a stablecoin, something that’s been solidified by UST’s ability to maintain its peg during market downturns. This is not something that other decentralized stablecoins have managed to do…

Now Terra’s DApps (decentralized applications) have in fact been the primary demand drivers for UST, especially the Anchor Protocol which has received praise from just about every other smart contract crypto project.

To put things into perspective, less than a year ago there was only one DApp on Terra. Today, there are over 100. How’s that for exponential growth. 

Another big demand driver for UST has been the regulatory concerns around centralized stablecoins in the United States which have increased significantly since last September…

As a result of these and other factors, almost 10 billion UST have been minted since September alone.”

At the time of writing, LUNA is trading at $51 with a 6% upside on the daily chart.