Coin Bureau host Guys claims that a top ten Ethereum (ETH) rival could rally up to three times from its current price.
Guy explains in a new YouTube video that algorithmic decentralized stablecoin Terra (LUNA) may rally up to 284%.
According to Guy, the rally would be primarily driven by 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.”
According to the Coin Bureau host, LUNA gets bullish when the rest of the crypto market is bearish.
“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.”
Guy says that one of the factors raising UST demand is the stablecoin’s decentralized nature.
“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 [savings platform] 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.”
LUNA, which currently boasts a market cap of slightly over $21 billion, is trading at $52.30 at time of writing. The TerraUSD stablecoin is currently ranked 15th by market cap, which is about $11.3 billion.