The Terra price has stabilized in recent days as demand for Ethereum competitors has increased. The LUNA price is trading at $39, up about 15% from this week’s low. The total market cap rose to more than $14 billion, making it the 12th largest cryptocurrency in the world.
Terra continues to grow
Terra is a blockchain project that has become relatively popular these days. The company responsible for developing the platform is Terraform, which has received more than $175 million from a group of venture capital firms including Pantera Capital, BlockTower Capital, and XRP Capital.
Terra is best known for its stablecoin TerraUSD (UST), which is worth more than $2.5 trillion. The platform is also a leading alternative to Ethereum. It is also one of the biggest use cases is the development of decentralized financial projects (DeFi).
According to DeFi Llama, there are already eight DeFi projects running on the Terra ecosystem. These DeFi projects have grown so fast that their total value of locked tokens (TVL) has grown to more than $8.4 billion. Anchor, the largest of them, has a TVL value of more than $3.6 billion, while Lido has a TVL value of $2.3 billion.
Still, Terra has a long way to go to beat Ethereum, which has hundreds of popular DeFi projects with a TVL of more than $125 billion. Curve, the largest DeFi project, has a TVL of more than $13 billion. At the same time, Terra competes with other fast-growing platforms like Solana, Avalanche, and Binance Smart Chain.
Terra Price Forecast
The four-hour chart shows that the LUNA price has been in a strong uptrend lately. This week, the token managed to move above the key resistance at $36.60, which was the previous all-time high. It rallied and reached a new all-time high at $44.46, where it formed a double top pattern.
Terra price managed to overcome the forming bearish flag pattern and rallied to the current level of $39.15. It also moved above the 25-day and 50-day moving averages, while the MACD moved to the neutralale line. It has even moved over the chin of the double top pattern.
It looks like LUNA has gone through a break and retest pattern. Therefore, there is a probability that the uptrend will continue. This view will be confirmed if the price rises above its all-time high.