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Terra Luna Classic Price Prediction

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Terra Luna Classic price prediction: Will it rise?

Before turning to the Luna Classic price prediction, let's explain what LUNC is and where it came from.

Luna Classic became the first token native to the Terra blockchain in August 2018. It operates on the original Terra ecosystem code, unlike the new Terra (LUNA) chain. The primary purpose was to address the price fluctuations of the algorithmic stablecoin, UST.

The UST stablecoin used minting and burning Luna tokens to balance supply and demand to maintain its peg to the US dollar. However, in May 2022, UST lost its peg and collapsed. The UST stablecoin algorithm created trillions of LUNA tokens, resulting in hyperinflation and a 99% reduction in the value of the original LUNA token.

Current price and tokenomics

At the time of writing, the price of Terra Classic is $0.000125, and it has a 24-hour trading volume of $40,468,398, with $40,395,243 worth of trading volume on centralised exchanges and $77,346 on decentralised exchanges. It has a current CoinMarketCap ranking of #69, with a live market cap of $742,058,227. The circulating supply is 5,897,710,996,320; the maximum supply is not currently available. Additionally, the fully diluted market cap is $862,645,196.

LUNA vs. LUNC: What's the difference?

Do Kwon and Daniel Shin launched the original Terra blockchain in January 2018. LUNA was introduced through an ICO in early 2019. The blockchain was a great success and soon became one of the top 10 cryptocurrencies by market capitalisation. However, in May 2022, the stablecoin TerraUSD (UST) lost its USD peg and crashed with its sister token, Luna, causing a widespread cryptocurrency market downturn.

To revive the Terra blockchain, Do Kwon proposed a recovery plan that involved a hard fork in creating two separate chains, with the new chain not having any stablecoin. The validators approved the plan on 25 May, 2022, and Terra 2.0 was launched on 28 May. LUNA is the native token of Terra 2.0, while the original Terra blockchain was rebranded as Terra Classic, and its native token was renamed Luna Classic.

The staking tokens for governance on their respective chains are LUNC and LUNA. However, LUNC has an additional function of maintaining the price stability of its algorithmic stablecoin, Terra (UST), using the protocol's algorithmic market module. In cases where the price of UST rises or falls beyond a certain threshold, the module encourages the burning of UST to produce LUNC or the reverse. As a result, this process aids in reducing price volatility and maintaining stability.

LUNC serves as an arbitrage mechanism for the Terra algorithmic stablecoin, which sets it apart from LUNA since the latter is not associated with any algorithmic stablecoin.

Is there a future for Luna Classic?

As Do Kwon and his team focus on developing Terra 2, the community will be responsible for running the former network. This raises questions about the future practicality and usefulness of the former token. To address the issue of over-minting, the community has implemented a 1.2% burn tax on all LUNC transactions, including buying and selling. This effort could reverse the damage caused by over-minting by reducing the supply from 6.5 trillion to 10 billion tokens.

The burn tax destroys 1.2% of all LUNC tokens exchanged during a transaction. While this mechanism aims to decrease the supply, there may also be a corresponding rise in demand in the future.

The recent support from major exchanges such as Binance and KuCoin for the proposed LUNC token burn has sparked optimism for its future. This positive development may inspire other exchanges to follow suit and support the community's efforts to recover from previous setbacks. Furthermore, sustained support from these exchanges could boost trading volumes and sustain a bullish trend for LUNC in the coming months.

Luna Classic price prediction

Following its rebranding, the price of Terra Classic remained low at $0.0001 for several months, which was not surprising given the bearish market for cryptocurrencies. However, LUNC experienced a rally after its tax burn proposal was approved and implemented on 21 September, 2022. This tax involves burning 1.2% of each transaction on the blockchain, which should reduce the supply of LUNC and increase its demand.

Binance's announcement on 26 September, 2022, that it would burn all trading fees on LUNC spot and margin trading pairs caused Luna Classic to rally even further. Within a few hours, the price of LUNC increased by over 60%, rising from $0.00018 to $0.0003.

Despite the token's history of implosion, many crypto experts have become relatively bullish about the Luna Classic price prediction due to recent developments. DigitalCoinPrice predicts that LUNC's price will rise over the next five years, reaching around $0.0012 by 2025. They anticipate the price to stay the same over the next decade. WalletInvestor also forecasts that the cost will exceed $0.0026 by 2027.

AMB crypto's analysis has projected the price ranges and average prices of Terra Luna Classic (LUNC) for the next decade, covering data from 2023 to 2034. According to them, the expected Luna Classic price prediction range will be between $0.17 to $0.26, with an average price of $0.22 in 2023. And, by 2025, the cost would fluctuate from $0.00037 to $0.00025.

By the end of the decade, they expect the price of LUNC will reach between $0.0014 and $0.00093. And by 2034, the price is expected to rise to $0.004, and the yearly bottom could be at $0.0026.

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What are the potential risks of investing in Luna Classic?

It cannot be denied that the crash of the original Terra blockchain in May 2022 shook the confidence of many investors and crypto enthusiasts. They quickly labelled Do Kwon a fraudster and doubted the possibility of Terra making a comeback.

Despite this, the Terra Classic blockchain has shown promise since the fork. The coin gained traction after Binance announced the LUNC tax burn on transactions, which indicates a potential increase in the value of Luna Classic in the years to come.

However, INTERPOL has reportedly requested law enforcement agencies worldwide to locate and apprehend Do Kwon. Terraform Labs, the development firm behind Terra, is accused of running a Ponzi scheme. Therefore, it is difficult to determine if LUNC will genuinely rise from the ashes or ultimately crash and burn.

While some argue that a strong community on Twitter is expressing their support for the project, it may not be wise for investors to invest in LUNC, given that Do Kwon and his team are reportedly working on Terra 2.0.

There are numerous upcoming projects in the crypto space with promising technology and strong teams that are genuinely addressing critical issues. Thus, instead of holding onto a project that has failed and been abandoned by its team, it may be more prudent for retail investors to conduct research and identify promising projects of the future to invest in.

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Author: Harsh Verma

Harsh is the founder of FinEndorse SEO agency and is an experienced content writer and SEO expert with hands-on industry experience and a proven track of success.

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