Why did LUNA crash? The Luna crypto crash was caused by its connection to TerraUSD (UST), the algorithmic stablecoin of the Terra network.
The significantly increased supply of LUNA on crypto markets along with the de-pegging of UST ultimately made investors lose confidence in the project and so the price of LUNA continued to crash till it was basically worthless.
The bottom line: So, will Luna Classic Reach $1? Luna's all-time high market cap was about $41 billion, meaning that the price of LUNC would have to increase by over 80x to match it. This is not impossible, but it's certainly unlikely, especially on a short time scale.
In May 2022, the value of Luna collapsed from over $120 a coin to effectively zero, wiping out over $50bn in market capitalization of UST/LUNA and causing over $400bn in losses for the broader cryptocurrency markets.
But last week, Luna and another currency that Mr. Kwon developed, TerraUSD, suffered a spectacular collapse. Their meltdowns had a domino effect on the rest of the cryptocurrency market, tanking the price of Bitcoin and accelerating the loss of $300 billion in value across the crypto economy.
So at the moment, one can say with confidence that current community activities will NOT spur a recovery in Luna Classic price. Luna Classic could still recover due to market conditions improving but that would be in line with the market and not the outperformance as seen between May and September.
Terra's UST and LUNA cryptocurrencies lost nearly $45 billion (€44 billion) in value within 72 hours in May.
Regardless of this, community's trust on the project was already lost, giving rise to the complete collapse of both tokens. LUNA and UST dropped from a value of $87 and $1, on 05 May 2022, to less than $0.00005 and $0.2, on 13 May 2022, respectively.
Luna Circulating Supply
Before the dramatic price collapse, Luna's circulating supply was in the range of 340 million to 350 million. However, on May 10, this jumped to 386 million, before hitting 1.5 billion on May 11. By May 12, this circulating supply was at over 176 billion.
The entire event that unfolded from the time UST lost its peg took place in less than 48 hours, within which LUNA went from $100 to less than a dollar.
Based on our LUNA price forecast and technical analysis, the coin is expected to continue its upward trend significantly throughout 2029. The potential high for the year may reach around $12.46, while the potential low could be around $8.65.
Most are making LUNA coin price predictions for 2022 and beyond that are far from encouraging for investors. CoinCodex's LUNA crypto price prediction expects the depreciating trend to continue. The fear and greed index is displaying “fear”, with 27 out of 28 technical analysis suggesting investors should sell.
When luna's valuation plummeted from about $80 (£66) at the start of the month to a fraction of a cent, terra's followed suit. Their collapse sparked panic in the market. The price of bitcoin fell to $26,000, down 60% from its November 2021 peak, while ether, the next-biggest cryptocurrency, lost 30% of its value.
The value of Luna Terra plunged about 80 per cent, making the coins now almost worthless. It should be noted that stablecoins work on the supply and demand game. Any stable coin that is developed has to be backed by some collateral, to make its price stable.
According to the data from the Luna Rich List, as of 23 September, TerraForm Labs was the biggest terra classic holder, with a balance of 432.71 million LUNC tokens.
The LUNA current supply, as of 2 September 2022, surpassed one billion tokens, while LUNA circulation was at about 127 million tokens. Since the launch of LUNA 2.0, LUNA tokens are no longer burned as the cryptocurrency does not have a maximum supply.
No, Terra (LUNA) probably will not reach $1000 at the end of 2025. This could be plausible only if demand for stablecoins on the Terra network grows very high. That would, in turn, cause a large part of LUNA supply to be burned, to keep stablecoins from deviating from Terra crypto price predictions.
Kwon Do-Hyung (Korean: 권도형), more commonly known as Do Kwon, is the South Korean co-founder and CEO of Singapore-based Terraform Labs, the parent company of crashed stablecoin TerraUSD and cryptocurrency Luna.
Changpeng Zhao suffered a $1.4 billion loss in wealth after the SEC cracked down on his Binance crypto exchange. This week's U.S. government crackdown on crypto trading platforms Binance and Coinbase come at a hefty price tag for their billionaire founders, Changpeng Zhao and Brian Armstrong.
At 1 a.m. UTC on May 10, those remaining reserves were moved in their entirety, in a single transaction, to an account at the cryptocurrency exchange Binance.
Billionaires with largest net worth drop due to global crypto crash in 2022. Binance founder and CEO Changpeng Zhao (commonly known as CZ) was the crypto billionaire who lost the most money following the crypto crisis of 2022, with a net worth drop amounting to 82 billion U.S. dollars.
Luna, the cryptocurrency associated with TerraUSD, or UST, is now worth $0 as the stablecoin has dramatically lost its $1 peg.
The BBC reported that the crypto streamer who only goes by the username “Chancers” said that after the crash “I felt like I was going to die.” Chancers, whose face was concealed by a mask, hat and sunglasses as he talked to reporters, claimed he had started investing in crypto in 2017, but lost $2.4 million in Luna ...