LUNA is the native cryptocurrency of the Terra system, which was launched in 2019. TerraUSD was pegged to the LUNA coin to maintain its price stability. Those familiar with the cryptocurrency industry are well aware of the May 2022 twin coin collapse that led to a crypto crash during Q2 2022.
It was in 2018 that two South Korean techpreneurs, Do Kwon and Daniel Shin, founded Terraform Labs in Seoul. The two launched the Terra blockchain and introduced the UST stablecoin, pegged to the LUNA token in 2019.
One of the most popular stablecoin projects was focused on providing the benefits of price stability, wider currency adoption, decentralized anonymity, and fast and affordable payments. However, the Terra ecosystem completely collapsed in May 2022, and a branch was proposed under the Terra Ecosystem Recovery Plan 2. A new version of Luna (LUNA) was launched, with the older one (LUNC) coexisting.
Transactions on the Terra 2.0 blockchain are verified through a proof-of-stake (PoS) consensus mechanism.
The leading cryptocurrency Ethereum also switched from proof-of-work to proof-of-stake, which only made 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 designed to protect coin holders from the volatility of other cryptocurrencies. It is pegged to either a fiat currency such as the USD or a backing cryptocurrency. Terra USD (UST) was pegged to Luna Classic (LUNC- then only Luna).
This is where the problem started. Cryptocurrency is in no way equivalent to gold reserves. As UNA prices destabilized, UST prices were adversely affected, and the entire stablecoin system collapsed in May 2022.
For the first few years, LUNC maintained good performance. And by the end of 2021, it was even among the top 10 cryptocurrencies by market value.
However, the Terra system collapsed in May 2022, leading to a fork. She basically launched a new version of Luna. The Terra Ecosystem Revival Plan 2 was implemented, according to which both versions of the Luna token can exist.
The future of this cryptocurrency is undoubtedly key to determining whether the failed crypto can come back and grow.
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 a reason to celebrate not only for this particular cryptocurrency but for many other cryptocurrencies.
Price, volume and everything in between LUNC
Since its launch in 2019, the price of LUNC hovered around $0.2 and $1.3 until April 2021. When the crypto market boomed in mid-2021, its price began to rise. And it almost touched $100 by the end of the year.
Starting in 2022, it constantly oscillated between $50 and $100, reaching an all-time high (ATH) of $119.18 on April 5, 2022. The following month, its price began to decline, and the Terra system collapsed in mid-May.
Bloomberg reported in May 2022 that the market lost approximately $45 billion in the week following the Terra collapse. Terraform Labs and its co-founder Do Kwon have been fined $78.4 million in corporate and income tax by the Korean National Tax Service.
On May 25, 2022, Bloomberg reported that the network had 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 switching to LUNA. It should be noted here that LUNC is not doing well at all so far.
The market cap of LUNC similarly reflects market sentiment about the cryptocurrency. It didn't even reach $500 million in 2019-20, but started to increase in 2021.
Now, at the beginning of February, it crossed the $1 billion mark. And by the end of 2022, it was more than 36 billion dollars.
LUNC's upward trajectory continued into the next year, surpassing $41 billion in April 2022. But after the May 2022 crash, it oscillates 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. A request to discard the travel document has been forwarded to the National Department of Foreign Affairs, Bloomberg reported. An arrest warrant has already been issued for him and other members.
Recently, the Financial Times reported that South Korean prosecutors have reportedly asked Interpol to issue a red notice against Kwon. However, Kwon tweeted that he is not on the run from any interested government agency, adding that the company is fully cooperating and has nothing to hide.
The crypto crisis that followed the collapse of the twin, Terra USD and Luna Classic, adversely affected the entire crypto market. LUNC is particularly vulnerable under such circumstances.
LUNC predictions for 2025
Before reading further, you should understand that the predictions of different cryptocurrency platforms and analysts vary widely, as different analysts rely on different sets of metrics to reach their conclusions.
Many times these predictions can go very wrong. Furthermore, no one can predict events like China's cryptocurrency ban or the Russia-Ukraine crisis. Now let's take a look at what various analysts are saying about the future of LUNC in 2025.
Telegaon predicts the minimum and maximum prices of LUNC in 2025 to be $0.0089 and $0.028 respectively.
Other experts, after analyzing LUNC's past performance, predict that its average price for the given year will be $0.015.
However, Coinpedia is not so optimistic about the future of Luna Classic. It predicts that LUNC will trade as high as $0.002846 and as high as $0.001094 in 2025. Its average price in that year will be $0.001776.
LUNC predictions for 2030
Telegaon continues to remain bullish on the future of LUNC in 2030. It predicted that LUNC will trade as high as $5.23 and as high as $1.93 in 2030, with its average price remaining at $3.11.
On the other hand, Bitcoin Wisdom predicted that the price of LUNC will continue to oscillate between $0.002603 and $0.002834 in 2030. Its average price in that year is predicted to be $0.002719.
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