Staking crypto coins has been the trend as investors see it as an excellent way to make a passive income source on their long-term holdings. Terra is one such platform attracting a significant number of investors.
Terra’s total value locked was $11.9 billion on Dec 1st, and in just a month, it massively increased and reached a new high of $20.05 billion, which is a gain of 68% in just a month. In addition, Terra has an annual staking payout of roughly 12.10 per cent.
The interest in Luna, the token of the Terra platform, remained strong even when Bitcoin and altcoins were in a downtrend.
What could boost the demand for Terra Luna?
On its Twitter handle on Jan 8th, Terra (LUNA) shared its 172nd proposal to change the Terra tax rate from its current variable format of 1 SDT, which is about ~$1.39, today, to reduce the tax to zero. The voting is still live.
The terra tax rate is a monetary policy lever that is variable. It’s a fee in addition to the gas fee paid for all Terra network transactions. Lowering the terra tax rate will make it more economical to use the platform and could boost Luna’s demand.
Luna Price Technical outlook
Terra is currently trading at $70.12, a drop of 2.72% in the last 24 hours. Since late December, after making an all-time high of $103.33, the price has been stuck in a bearish trend channel.
There is a support zone at around $63.16 formed in 2022, which the price also respected in December. Following the bounce from the $62.51 level, the price jumped to form a new swing high at $75.72.
If the price breaks the recent swing low at $62.51, the market could move down more till $54.40. However, if the price reacts in the current zone and goes up and breaks the recent swing high and the bearish channel at $75.72, the market could trade up.