by Reservation: The datasets provided in the article below have been compiled from a set of online resources and do not reflect AMBCrypto’s own research on the subject.
The recent decline in the crypto market, precipitated by the collapse of Silvergate Bank, is putting a heavy strain on Luna Classic (LUNC), the cryptocurrency that powers the original but largely defunct Terra blockchain ecosystem.
The altcoin fell more than 10% on the price charts on Friday. Since then, although the cryptocurrency has stabilized somewhat, it is still in a downtrend. It will remain at the same level until the macroeconomic headwinds subside.
Read the Terra LUNA Classic price forecast [LUNC] for 2023-24
Despite the recent declines, the LUNC is likely to reconvene in the near future with the Terra Luna Classic community rallying around a proposal to raise the price of the altcoin.
LUNC was at the center of the Terra ecosystem collapse in May 2022. The coin was also severely affected by the collapse of the cryptocurrency exchange FTX last November. Since then, its market capitalization has fallen from $1.5 billion to $1.0.4 billion.
Transactions on the Terra 2.0 blockchain are verified using a proof-of-stake (PoS) consensus mechanism.
The leading cryptocurrency, Ethereum (ETH), has also moved from proof-of-work to proof-of-stake. This has only exacerbated the competition between PoS blockchains.
The network has 130 validators working at any given time. As a PoS platform, it is considered a very environmentally friendly token.
Why do these predictions matter?
Stablecoin is designed to protect coin holders from the volatility of other cryptocurrencies. It is pegged to either a fiat currency such as USD or a supporting cryptocurrency. Terra USD (UST) was associated with Luna Classic (LUNC – then only LUNA).
This is where the problem started. Cryptocurrency is in no way equivalent to gold reserves. As LUNA prices destabilized, UST prices were also adversely affected, and the entire stablecoin system collapsed in May 2022.
For the first few years, LUNC did well. And this was even among the top 10 cryptocurrencies in terms of market value by the end of 2021.
But the Terra system collapsed in May 2022, leading to a fork. It basically launched a new version of Luna. The Terra 2 Ecosystem Recovery Plan has been implemented, according to which both versions of the Luna token can exist.
Undoubtedly, the future of this cryptocurrency is crucial in determining whether the failed cryptocurrency can come back and grow.
Well, his results after the May 2022 defeat have been less than celebratory so far.
But if LUNC trades well in the future, it will be cause for celebration not only for this particular cryptocurrency, but for many other cryptocurrencies as well.
Price, volume and everything in between LUNC
From its launch in 2019, the price of LUNC was around $0.2 and $1.3 until April 2021. When the cryptocurrency market boomed in mid-2021, its price soared and hit $100 by the end of the year USD.
Starting in 2022, it fluctuated 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 collapsed in mid-May.
At the time of publication on TradingView, the price was USD 0.00012119. The altcoin had a market capitalization of just over $715 million.
Source: TradingView
Bloomberg reported in May 2022, the market lost about $45 billion in the week following Terra’s collapse. Terraform Labs and its co-founder Do Kwon were fined $78.4 million in corporate and income tax from the Korean National Tax Service.
On May 25, 2022, Bloomberg reported that the network has launched a new version of the LUNA cryptocurrency. The older cryptocurrency is now called Luna Classic (LUNC) and the newer one is called Luna 2.0 (LUNA).
Although LUNC, the older cryptocurrency, has not been completely replaced, many users are moving to LUNA. At this point, it should be noted that LUNC has not done well so far.
LUNC’s market capitalization similarly reflects market sentiment regarding cryptocurrencies. It didn’t even reach $500 million in 2019-20, but it started growing in 2021.
Now, in early February, it crossed the $1 billion mark. And at the end of 2022, it was over $36 billion.
LUNC’s journey continued to grow the following year, and in April 2022 it surpassed $41 billion. But after the May 2022 crash, it fluctuated between $300 and $1.5 billion.
South Korea is now seeking to have Kwon’s passport revoked, after which he may be forced to return to South Korea. The country’s Ministry of Foreign Affairs has been asked to scrap the travel document, reported Bloomberg. An arrest warrant has already been issued against him and other members.
Recently Financial Times reported that South Korean prosecutors reportedly asked Interpol to issue a red notice against Kwon. however, I know tweeted that it is not running away from any interested government agency and added that the company is fully cooperating and has nothing to hide.
The crypto crisis that followed the collapse of the twin coins, Terra USD and Luna Classic, adversely affected the entire crypto market. Under these circumstances, the LUNC remains particularly vulnerable.
LUNC predictions for 2025
Before reading further, you should understand that the predictions of different cryptocurrency platforms and analysts vary greatly as different analysts rely on different sets of indicators to arrive at their conclusions.
Many times these predictions can go wrong. Besides, no one can predict events such as the Chinese ban on cryptocurrencies or the Russian-Ukrainian crisis. Now let’s take a look at what various analysts have to say about the future of LUNC in 2025.
Telegaon predicts that the minimum and maximum LUNC prices in 2025 will be $0.0089 and $0.028 respectively.
Other experts, analyzing the previous results of LUNC, predict that its average price in the mentioned year will be USD 0.015.
However, Coinpedia is not so optimistic about the future of Luna Classic. This predicts that LUNC will sell as high as $0.002846 and as low as $0.001094 in 2025. Its average price in said year will be $0.001776.
LUNC projections for 2030
Telegaon remains optimistic about the future of LUNC well into 2030. This predicted that the LUNC will sell from $5.23 to $1.93 in 2030, with an average price of $3.11.
On the other hand, Bitcoin Wisdom predicted that the price of LUNC will oscillate between USD 0.002603 and USD 0.002834 in 2030. Its average price in this year is forecast to be USD 0.002719.
Reservation
Now it is also worth turning to the elephant in the room. Forecasts and opinions on the project before and after the disaster have changed significantly in the last few months. This means that there is a lot of uncertainty around. For example, in March, Professor Carol Alexander, a member of Finder’s panel of experts, stated:
“… as the name suggests, it can actually fly to the moon (for a while).”
On the contrary, there are others who believe
“There’s a lot of uncertainty around LUNA right now - the project is really ambitious and the goal is admirable, but it’s not clear what the impact on the LUNA token itself will be.”
Application
So far, we’ve provided a concise summary of the LUNA Classic (LUNC). For those of you who are considering investing in cryptocurrencies, we would like to reiterate that cryptocurrency predictions cannot be completely relied upon. And you should do your own research before investing in LUNC.
The only thing that can save the coin is burning tokens, which will raise prices by reducing oversupply in the market. This 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 by 60% in just a few hours.
The cryptocurrency market remains very bearish and is likely to remain volatile for the next few months.
Recent Bloomberg report says the upcoming regulations would ban algorithmic stablecoins like TerraUSD, whose collapse led to a global crypto meltdown. This bill is currently being drafted in the US House of Representatives. The bill would make it illegal to develop or issue new “endogenously secured stablecoins”.
The New York Times interview Ethereum co-founder Vitalik Buterin claimed last month that the Terra Luna team was trying to manipulate the market to increase the value of the native cryptocurrency. He also recalled that many “smart people” said Terra was “essentially evil”.
In an interview with Laura Shin on “Freed” podcast. On October 28, Kwon claimed to have immigrated from South Korea to Singapore before the collapse of the Terra environment. He also denied reports that he eluded law enforcement.
Kwon said
“Whatever problems there were in Terry’s design, her weaknesses [in responding] to the cruelty of the markets is my responsibility and my responsibility alone.”
November 5 Terra Rebels tweeted that the first round of the lottery has finally ended and the winner walked away with over 24 million Terra Luna Classic (LUNC). Over 10.5 million LUNCs have been sent to the burn wallet. As we can see, such efforts are made in one way or another.
According to a recent third party audit by JS Held, a New York-based consulting firm, Luna Foundation Guard (LFG), the entity behind the defunct Terra ecosystem, spent $2.8 billion on cryptocurrency in May in an attempt to defend the peg of the TerraUSD (UST) algorithmic stablecoin. The audit also claims that Terraform Labs (TFL), the developer of the Terra blockchain, spent $613 million to defend the peg.
Luna Classic has announced that it will re-enable Inter Blockchain Communication (IBC), a protocol that enables messaging and asset trading with other blockchains. Member of the Terra Classic development team confirmed it on Twitter.
In terms of the basics, what can help with this gap is progress in implementing a proposal that was recently adopted by Terra Luna Classic validators. In particular, the community has adopted plan to relink LUNC’s sister stablecoin, USTC.
As the broader cryptocurrency market stabilizes ahead of a busy week of macro events, including a flurry of key U.S. employment data and Fed Chair Jerome Powell’s testimony before the U.S. Congress, LUNC bulls will be hoping the cryptocurrency can continue to find support above this level . level.
Market experts are not sure if the price of LUNC could reach $1 this year, but the forecasts are not entirely optimistic for investors. Whether the price will increase depends mainly on the Terra Luna Classic burn program, which will contribute to the token’s ability to sustain long-term price growth.
