disclaimer: The datasets shared in the following article have been compiled from a range of online sources and do not reflect AMBCrypto’s own research on the subject.
The price of the Luna Classic (LUNC) has increased from $0.0001638 to $0.0001675 in a week. Well, prices have gone up for almost all tokens; however, the price of LUNC has dropped by 30% since cryptocurrency exchange FTX went bankrupt more than a month ago.
Read price forecast for Terra LUNA Classic [LUNC] for 2023-24
LUNC has been at the heart of the crypto market’s problems since May 2022. It is again one of the hardest hit coins in the second crypto crash of the year. Despite the recent resistance, it remains to be seen how LUNC will respond to the market in the coming weeks. Another factor influencing price movement is the industry’s response to changing regulations in different countries.
Since the coin is currently depreciating, investors may still be concerned about whether the price of LUNC will rise.
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 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 environmentally friendly token.
Why are these projections important?
A stablecoin is intended to protect coin holders from the volatility of other cryptocurrencies. It is tied to a fiat currency such as USD or to a supporting cryptocurrency. Terra USD (UST) was paired with Luna Classic (LUNC, then just LUNA).
This is where the problem started. A cryptocurrency is in no way equal to gold reserves. When UNA prices were destabilized, it also negatively impacted UST prices, and the entire stablecoin system collapsed in May 2022.
In the first years, LUNC continued to perform well. And the used to be even in the top 10 of cryptocurrencies by market value by the end of 2021.
But the Terra system collapsed in May 2022, leading to a split. It basically launched a new version of Luna. The Terra Ecosystem Revival Plan 2 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 a failed crypto can make a comeback and grow.
Well, his performance after the May 2022 debacle hasn’t exactly been celebratory so far.
But if LUNC trades well in the future, it will not only be a celebration for this particular cryptocurrency, but for many other cryptos.
LUNC’s price, volume and everything in between
Since its launch in 2019, the price of LUNC continued to hover around $0.2 and $1.3 until April 2021. When the crypto market boomed in mid-2021, the price started to rise. And by the end of the year it was almost $100.
Following the collapse of FTX early this month, its market cap fell from $1.5 billion on November 8 to just under $1 billion at the time of going to press.
As of 2022, it continued to fluctuate between $50 and $100, reaching an all-time high (ATH) of $119.18 on April 5, 2022. The following month, the price began to fall and in mid-May the Terra system collapsed.
At the time of writing, it was trading at $0.00014005.
Bloomberg reported in May 2022 that the market lost about $45 billion within a week of Terra’s collapse. Terraform Labs and its co-founder Do Kwon were fined $78.4 million in corporate and income taxes from the Korean National Income Tax Agency.
On May 25, 2022, Bloomberg reported that the network has 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 older cryptocurrency, has not been completely replaced, many users are switching to LUNA. It should be noted that LUNC has not performed well at all so far.
LUNC’s market cap also reflects market sentiment towards crypto. During 2019-2020, it didn’t even reach $500 million, but started rising in 2021.
Now, in early February, it passed the $1 billion mark. And by the end of 2022, it was over $36 billion.
LUNC’s trip also continued to climb the following year and in April 2022 it passed $41 billion. But after the May 2022 crash, it fluctuated between $300 million and $1.5 billion.
South Korea is now seeking to revoke Kwon’s passport, after which he may be forced to return to South Korea. A request has been made to the country’s Ministry of Foreign Affairs to cancel 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. Kwan, however tweeted that he is not on the run 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, negatively affected the entire crypto market. LUNC remains particularly vulnerable in such circumstances.
LUNC’s predictions for 2025
Before reading on, please 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 great number of times these predictions can go wildly wrong. Moreover, no one can foresee events such as the Chinese crypto ban or the Russia-Ukraine crisis. Now let’s see what different analysts have to say about the future of LUNC in 2025.
Telegaon predicts that LUNC’s minimum and maximum prices in 2025 will be $0.0089 and $0.028, respectively.
Other experts, after analyzing LUNC’s past performance, predict that the average price in said year will be $0.015.
However, Coinpedia is not so optimistic about the future of Luna Classic. It predicts that LUNC will trade as low as $0.002846 and as low as $0.001094 in 2025. The average price in said year will be $0.001776.
LUNC’s predictions for 2030
Telegaon remains optimistic about the future of LUNC in 2030 as well. It predicted that LUNC will trade as high as $5.23 and as low as $1.93 by 2030, with the average price remaining at $3.11.
On the other hand, Bitcoin Wisdom predicted that the price of LUNC will continue to fluctuate between $0.002603 and $0.002834 in 2030. The average price in said year will be $0.002719 as per the forecast.
Now it’s worth addressing the elephant in the room as well. Pre- and post-crash projections and opinions about the project have changed significantly in recent months. That means there is a lot of ambiguity around. For example, in March, Professor Carol Alexander, a member of Finder’s panel of experts, claimed:
“…as the name implies, it could even (for a while) go to the moon.”
On the contrary, there are others who believe,
“There is currently a lot of uncertainty around LUNA - the project is very ambitious and the goal is admirable, but what the effect will be on the LUNA token itself is unclear.”
So far we have provided a brief summary of LUNA Classic (LUNC). For those of you considering investing in cryptocurrency, we want 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. It was already put to the test in September when Binance and other major CEXs started burning LUNC tokens, driving LUNC’s price up 60% in just a few hours.
The cryptocurrency market still remains very bearish and is likely to remain volatile in the coming months.
A recent Bloomberg report says upcoming legislation would ban algorithmic stablecoins like TerraUSD, the collapse of which led to a global crypto crash. The said bill is currently being drafted in the US House. The bill would make it illegal to develop or release new “endogenously secured stablecoins.”
The New York Times interviewed Ethereum co-founder Vitalik Buterin last month alleging that the Terra Luna team attempted market manipulation to increase the value of the native cryptocurrency. He also recalled that many “smart people” had stated that Terra was “fundamentally evil”.
In an interview with Laura Shin on the Podcast “Unchained”. on October 28, Kwon claimed to have migrated from South Korea to Singapore before the demise of the Terra environment. He also refuted reports that he is evading law enforcement.
Kwon said, “Whatever problems there were in Terra’s design, its weakness [in responding] for the cruelty of the markets, it is my responsibility and my responsibility alone.”
On November 5, Terra Rebels tweeted that the first round of the lottery game had finally ended and that the winner walked away with more than 24 million Terra Luna Classic (LUNC). More than 10.5 million LUNC were sent to the burn wallet. As we can see, such efforts are underway one way or another.
According to a recent audit by a third party by JS Held, a New York-based consultancy, Luna Foundation Guard (LFG), the entity behind the defunct Terra ecosystem, spent $2.8 billion in crypto in May to defend the algorithmic stablecoin TerraUSD (UST) . The audit also alleges that Terraform Labs (TFL), the developer of the Terra blockchain, spent $613 million defending the link.
We need to see how the Terra ecosystem responds to these developments and whether it can adapt to emerging trends. These changes will determine whether LUNC can gain investor confidence.
Luna Classic has announced that it will re-enable Inter Blockchain Communication (IBC), a protocol for sharing messages and trading assets with other blockchains. A member of the Terra Classic development team confirmed this on Twitter.