Disclaimer: The datasets shared in the following article are compiled from a range of online resources and do not reflect AMBCrypto’s own research on the subject.
LUNA is the native cryptocurrency of the Terra system launched in 2019. TerraUSD was pegged to the LUNA coin so that it could maintain its price stability. Those familiar with the cryptocurrency industry are well aware of the May 2022 double coin collapse that led to the crypto crash during the second quarter of 2022.
In 2018, two South Korea-based 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, it focused on delivering the benefits of price stability, wider currency adoption, decentralized anonymity and fast, affordable payments. However, the Terra ecosystem completely collapsed in May 2022 and a split was designed according to the Terra Ecosystem Revival Plan 2. A new version of Luna (LUNA) was launched, with the older one (LUNC) coexisting.
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 the proof-of-work to the proof-of-stake mechanism that has 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 eco-friendly token.
Why are these projections important?
A stablecoin is intended to protect coin holders from the volatility of other cryptocurrencies. It is pegged to a fiat currency such as USD or to a supporting cryptocurrency. Terra USD (UST) was pegged to Luna Classic (LUNC- then only Luna).
This is where the problem started. A cryptocurrency is in no way an equivalent of gold reserves. When UNA prices became destabilized, it also negatively impacted UST prices, and the entire stablecoin system collapsed in May 2022.
In the early years, LUNC continued to perform well. And the used to be even in the top 10 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.
The future of this cryptocurrency is undoubtedly crucial in determining whether a failed crypto can make a comeback and grow.
Well, the performance after the May 2022 debacle has been less than celebratory thus far.
But if LUNC trades well in the future, it will be a celebration not only for this particular cryptocurrency, but for many other cryptos.
LUNC’s price, volume and everything in between
Since its launch in 2019, LUNC’s price has hovered 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 hit nearly $100.
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 the Terra system collapsed in mid-May.
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 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 moving to LUNA. It should be noted here that LUNC has not performed well at all so far.
LUNC’s market cap similarly reflects the market sentiment regarding the crypto. During 2019-20, it didn’t even reach $500 million, but started rising in 2021.
Now, by early February, it crossed the $1 billion mark. And by the end of 2022, it was over $36 billion.
LUNC’s journey also continued to climb the following year, passing $41 billion in April 2022. But after the May 2022 crash, it fluctuates between $300 million and $1.5 billion.
South Korea is now trying to revoke Kwon’s passport, after which he may be forced to return to South Korea. A request has been passed to the country’s Ministry of Foreign Affairs to cancel the travel document, reported Bloomberg. An arrest warrant has already been issued for him and other members.
Recently, Financial Times reported that South Korean prosecutors have reportedly asked Interpol to issue a Red Notice against Kwon. Kwon, however, 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 coins, Terra USD and Luna Classic, has negatively impacted the entire crypto market. LUNC remains particularly vulnerable in such circumstances.
LUNC’s predictions for 2025
Before reading further, please understand that predictions from different cryptocurrency platforms and analysts vary widely as different analysts rely on different sets of metrics to arrive at their conclusions.
Quite a few times these predictions can go completely wrong. Moreover, no one can foresee events such as the Chinese crypto ban or the crisis between Russia and Ukraine. Now let’s see what various 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 will be $0.015 that year.
However, Coinpedia is not so optimistic about the future of Luna Classic. It predicts that LUNC will trade to $0.002846 and as low as $0.001094 in 2025. The average price in that year will be $0.001776.
LUNC’s predictions for 2030
Telegaon remains optimistic about the future of LUNC in 2030. It predicted that LUNC will trade to $5.23 and as low as $1.93 by 2030, with an average price of $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 that year is forecast to be $0.002719.
Now it is worth addressing the elephant in the room as well. Pre- and post-crash forecasts and opinions about the project have changed significantly in recent months. That means there is a lot of uncertainty. For example, in March, Professor Carol Alexander, a member of Finder’s panel of experts, claimed:
“…as the name implies, it could even go to the moon (for a while).”
On the contrary, there are others who believe,
“There is a lot of uncertainty surrounding LUNA at the moment – 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 concise summary of LUNA Classic (LUNC). For those of you who are considering investing in cryptocurrency, 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 cryptocurrency market still remains very bearish and is likely to remain volatile in the coming months.
A recent Bloomberg report says impending legislation would ban algorithmic stablecoins like TerraUSD, whose collapse sparked a global crypto crash. The said bill is currently being drafted in the US House. The bill would make it illegal to develop or issue new “endogenously collateralised stablecoins”.
We also need to keep an eye on how the Terra community would adapt to the changes in technology and the market. It will determine whether these developments will succeed in regaining investor confidence.
This post Terra LUNA Classic [LUNC] Price prediction 2025-2030: $5 could be a reality for LUNC
was published first on https://ambcrypto.com/terra-luna-classic-lunc-price-prediction-1/