Disclaimer: The data sets shared in the following article were compiled from a set of online resources and do not reflect AMBCrypto’s own research on the subject.
The Terra Luna Classic (LUNC) is up 11% in one day, from $0.0001605 to 0.0001906 today. The price rise has been witnessed by all tokens; So far, the price of LUNC has fallen 20% since the now-bankrupt FTX cryptocurrency exchange collapsed.
LUNC has been at the root of the crypto market’s difficulties since May of this year. Once again, it is among the hardest-hit coins in the second crypto crash of the year. Although LUNC has shown some resistance recently, it remains to be seen how the LUNC coin reacts to the market in the coming weeks. Another factor influencing their price movement is how the industry responds to the changing regulatory state in countries.
Read Price prediction for Terra LUNA Classic [LUNC] for 2023-24
The LUNC price drop this week was due to the FTX debacle which negatively affected the entire cryptocurrency industry. No token has been able to escape the heat of the market and LUNC has witnessed a 15% drop.
Luna Classic (LUNC) supports nearly 40 decentralized applications (dApps), and the number is growing. After the world’s largest exchange by volume announced a higher frequency of burning LUNC, analysts are predicting that the asset will soon overtake Dogecoin and Shiba Inu.
Since the value of the coin is currently falling, investors may still be worried about whether the price of LUNC will increase.
Transactions on the Terra 2.0 blockchain are validated through the Proof-of-Stake (PoS) consensus mechanism.
The leading cryptocurrency, Ethereum, has also moved from a proof-of-work mechanism to a proof-of-stake mechanism. This has only made the competition between PoS blockchains tougher.
The network has 130 validators working at any given time. As a PoS platform, it is considered a very green token.
Why do these projections matter?
A stablecoin is meant to protect coin holders against the volatility of other cryptocurrencies. It is pegged to a fiat currency like USD or to a backing cryptocurrency. Terra USD (UST) was pegged to Luna Classic (LUNC, then just LUNA).
This is where the problem started. A cryptocurrency is in no way equivalent to gold reserves. As UNA prices destabilized, it also negatively affected UST prices, and the entire stablecoin system collapsed in May 2022.
For a few initial years, LUNC continued to do well. Cast I was even among the top 10 cryptocurrencies by market value at the end of 2021.
But the Terra system collapsed in May 2022, causing a fork. Basically, it released a new version of Luna. The Terra Ecosystem Revival Plan 2 was implemented according to which both versions of the Luna token can exist.
Without a doubt, the future of this cryptocurrency is crucial in determining whether a failed crypto can come back and grow.
Well, his performance after the May 2022 debacle has, so far, been less than celebratory.
But if LUNC trades well in the future, it will be cause for celebration not just for this particular cryptocurrency, but for many other cryptocurrencies.
Price, volume and everything else from LUNC
Since its launch in 2019, the price of LUNC hovered around $0.2 and $1.3 until April 2021. When the cryptocurrency market spiked in mid-2021, its price began to rise. And it almost hit $100 at the end of the year.
As of 2022, it continued to hover between $50 and $100 and hit an all-time high (ATH) of $119.18 on April 5, 2022. The following month, its price began to fall, and the Terra system crashed in mid-May.
At press time, it was trading at $0.00017858.
Bloomberg reported in May 2022 that the the market lost approximately $45 billion within a week after the collapse of Terra. Terraform Labs and its co-founder Do Kwon were fined $78.4 million in corporate and income taxes from the Korea National Tax Service.
On May 25, 2022, Bloomberg reported that the network launched a new version of the cryptocurrency, LUNA. The older crypto is now called Luna Classic (LUNC) and the newer one is called Luna 2.0 (LUNA).
Although LUNC, the oldest cryptocurrency, has not been completely replaced, many users are moving to LUNA. It should be noted here that LUNC has so far not performed well at all.
LUNC’s market capitalization similarly reflects market sentiment regarding cryptocurrencies. Throughout 2019-20, it didn’t even hit $500 million, but it started to rise in 2021.
Now, in early February, it crossed the $1 billion mark. And, at the end of 2022, it was above 36,000 million dollars.
LUNC’s journey also continued to advance the next year and in April 2022, it surpassed $41 billion. But after the May 2022 crash, it has been hovering between $300 million and $1.5 billion.
South Korea is now seeking to revoke Kwon’s passport, after which he could be forced to return to South Korea. An application has been passed to the nation’s Ministry of Foreign Affairs to discard the travel document, reported Bloomberg. An arrest warrant has already been issued for him and other members.
Recently, Financial Times reported that South Korean prosecutors have reportedly asked Interpol to issue a Red Notice against Kwon. Kwon, however, tweeted that he is not running from any interested government agency, adding that the company is in full cooperation and has nothing to hide.
The crypto crisis that followed the collapse of the twin coins, Terra USD and Luna Classic, has negatively affected the entire crypto market. LUNC, in such circumstances, remains particularly vulnerable.
LUNC predictions for 2025
Before you read any further, you should understand that predictions from different cryptocurrency platforms and analysts vary widely, as different analysts rely on different sets of metrics to reach their conclusions.
A good number of times, these predictions can go very wrong. Also, no one can foresee events like the Chinese crypto ban or the Russia-Ukraine crisis. Now let’s take a look at what different analysts have to say about the future of LUNC in 2025.
telegaon predicts that the minimum and maximum prices of LUNC in 2025 will be $0.0089 and $0.028, respectively.
Other experts, after analyzing the previous performance of LUNC, predict that its average price in said year will be $0.015.
However, Coinpedia is not so optimistic about the future of Luna Classic. It’s predicts that LUNC will trade as high as $0.002846 and as low as $0.001094 in 2025. Its average price in said year will be $0.001776.
LUNC predictions for 2030
Telegaon continues to be optimistic about the future of LUNC as well in 2030. That foretold that LUNC will trade as high as $5.23 and as low as $1.93 in 2030, with the average price remaining at $3.11.
On the other hand, Bitcoin Wisdom foretold that the price of LUNC will continue to oscillate between $0.002603 and $0.002834 in 2030. Its average price in that year will be $0.002719 according to the prediction.
Now, the elephant in the room is also worth heading to. Pre- and post-accident projections and opinions about the project have changed significantly in recent months. This means that there is a lot of uncertainty around. For example, in March, Professor Carol Alexander, a member of the Finder expert panel, reclaimed,
“…as the name implies, it might actually go to the moon (for a while).”
On the contrary, there are others who believe,
“There is a lot of uncertainty around LUNA right now – the project is really ambitious and the goal is admirable, but it is not clear what the effect on the LUNA token will be.”
So far, we have provided a brief overview of LUNA Classic (LUNC). For those of you contemplating investing in cryptocurrency, we would like to reiterate that cryptocurrency predictions cannot be completely trusted. And you should do your own research before making an investment in LUNC.
The only thing that can save the coin is burning tokens, which will increase prices by reducing excess supply from the market. It was already put to the test in September when Binance and other major CEXs started burning LUNC tokens, causing the price of LUNC to skyrocket 60% in just a few hours.
The cryptocurrency market remains very bearish and is likely to remain volatile for the next few months.
A recent Bloomberg report says upcoming legislation would ban algorithmic stablecoins like TerraUSD, whose collapse sparked a global cryptocurrency crash. Said bill is currently being drafted in the United States House of Representatives. The bill would make it illegal to develop or issue new “endogenously guaranteed stablecoins.”
The New York Times interviewed Ethereum co-founder Vitalik Buterin claimed last month that the Terra Luna team tried to manipulate the market to increase the value of the native cryptocurrency. He also recalled that many “intelligent people” had stated that Terra was “fundamentally evil.”
In an interview with Laura Shin in the “Unchained” podcast On October 28, Kwon claimed that he immigrated from South Korea to Singapore before the disappearance of the Terra environment. He also refuted reports that he is eluding legal authorities.
Kwon said, “Whatever problems existed in Terra’s design, its weakness [in responding] Faced with the cruelty of the markets, it is my responsibility and only my responsibility”.
On November 5, Terra Rebels tweeted that the first round of their lottery game was finally over, with the winner walking away with over 24 million Terra Luna Classic (LUNC). More than 10.5 million LUNC were sent to the burned wallet. As we can see, such efforts are underway in one form or another.
According to a recent third party audit Per JS Held, a New York-based consulting firm, Luna Foundation Guard (LFG), the entity behind the defunct Terra ecosystem, spent $2.8 billion on crypto trying to defend the peg of the algorithmic stablecoin TerraUSD (UST). in May. The audit also claims that Terraform Labs (TFL), the developer of the Terra blockchain, spent $613 million defending the peg.
We must keep an eye on how the Terra ecosystem reacts to these developments and whether it can adapt to emerging trends. These changes will determine whether LUNC can earn the trust of investors.