Can Terra Networks original coin rebound?
The Terra Networks project remains one of the most talked about crypto initiatives.
While the project was once a dominant force in the decentralized finance sector, it has fallen below others due to the implosion of its algorithmic stablecoin, TerraUSD (UST), in May 2022.
While many online articles have given a timeline about the implosion of the project and the whereabouts of its co-founder, Do Kwon, we would like to examine the possibilities for Terra Classic.
Is Terra Classic a good investment, and can the development team behind the protocol revive it to where it was before the collapse that led to billions of dollars in investor money being lost?
Terra Network's LUNC: Can the crypto reach $1?
Terra Classic is denoted by the ticker symbol LUNC. The cryptocurrency reached an all-time high (ATH) price of $119.18 on 5 April, 2022. During the lows borne out of the sale of Terra Networks UST stablecoins, the coin plunged to an all-time low of $0.00001675 on 13 May, 2022.
This led to a further reduction in its TVL (total value locked). Once trailing only Ethereum in the total amount of money locked into DApps (decentralized applications) on the protocol, it once reached a high of $33 billion in value locked.
LPs (Liquidity Providers) for DApps such as Anchor, Mirror, Pyton Protocol, Astroport, Mars Protocol, Risk Harbor, Lido, Terraswap, Spectrum Protocol, Aperture Finance, and White Whale lost a combined $60 billion.
Despite its revival, LUNC was exchanging hands for $0.00007739 as of 18:00 UTC on 10 August, 2023. This value has seen many analysts include the coin with the likes of memecoins Pepe Token (PEPE), Shiba Inu (SHIB), and Dogecoin (DOGE) as to whether they have a chance of breaching the $1 milestone.
Terra Classic can cross $1 if positive market sentiment forces the hands of traders to return to the once much-loved crypto coin. While LUNC has failed to reclaim its glory days, when the minimum daily trading volume was above $100 million, the digital asset has its lowest daily trading volume at $14 million so far in August. This corresponds to a market capitalization of $456 million.
Aside from market sentiment, which can drive all cryptocurrencies, the project needs to have a strong underlying infrastructure that promises here-and-now products in the non-fungible token (NFT) industry, Metaverse, and a return to having DApps that will contribute to the overall valuation of the coin.
What’s more, LUNC has become relatively cheaper as it has fallen 99% below its ATH. A $100 investment could see your account credited with around 1.3 million coins.
Should LUNC test $0.5 in the future, that could result in about $640,000. If it retests $1 again, you could be walking away as a millionaire.
Despite the controversy, LUNC has rebounded well when it comes to its relationships with cryptocurrency exchanges. After being delisted by most centralized exchanges, the coin has found faith with the likes of Chanpeng Zhao’s Binance, Gate.io, OKX, Huobi Global, Kraken, Crypto.com, and MEXC Global.
Overall, more than 30 trading platforms support the crypto asset, and it is available in more than 50 markets.
Is Terra Networks digital currency a good investment?
Yes, LUNC is trading for a relatively lower price. While it continues to suffer negative media due to leading the market crash of 2022 (later deepened by Sam Bankman-Fried's FTX), it's a coin that can be considered by low-income traders.
Potential coin buyers should consistently follow news about the project on crypto portals such as CoinDesk, CoinTelegraph, and others.
You should also weigh the risks and rewards of buying the coin. All crypto investments are risky, but if the potential rewards of buying LUNC far and wide exceed the risks of investing in the coin, then you can add it to your investment portfolio.
Author: Raphael Minter
Raphael Minter/ Albert Zuhnden (preferred pen name) is a crypto finance writer, data miner, and fundamental analyst. Raphael has written hundreds of articles about centralized and decentralized financial instruments such as precious metals, commodities, stocks, and cryptocurrencies. He broke into digital finance in 2016 and believes digital assets and blockchain technology is the future of finance.