TerraUSD was risky because it wasn't backed by cash, treasuries or other traditional assets like the popular stablecoin tether. The stability of UST was derived from algorithms that linked the value to Luna. Many experts were skeptical that an algorithm could keep two tokens stable.
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.
Terra, the third largest cryptocurrency ecosystem after Bitcoin and Ethereum, collapsed in three days in May 2022 and wiped out $50 billion in valuation. At the center of the collapse was a run on a blockchain-based borrowing and lending protocol (Anchor) that promised high yields to its stablecoin (UST) depositors.
A change in market dynamics caused LUNA prices to snap at a breakneck pace. LUNA plummeted through several support levels as terraUSD (UST), a Terra-issued stablecoin that's meant to be priced 1:1 to the U.S. dollar, lost its peg.
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.
The only way for Luna to recover to a price of $80 would be to burn enough Luna tokens to bring the circulating supply back down to around 350 million. This method has been suggested already by the Binance CEO, Changpeng Zhao.
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.
LUNA Current Worth
The average price has stayed consistently near the $2 mark from the end of 2022 into 2023. With the price forecast, if you are looking to buy it today, you may want to hold off. LUNA has a circulating supply of 204.6 million and a market cap of $441.9 million.
Is Terra LUNA Undervalued? After the crash, the Terraform team is working hard to stabilize the network. As such, it is safe to say that Terra is one of the top undervalued cryptocurrencies of 2022. Besides, going by our LUNA price prediction of $10 by 2030, LUNA is massively undervalued at current prices.
By May 16, the Terra stablecoin and Luna token were all but dead, with some media outlets calling it a Ponzi scheme while others were calling it a rug-pull scam. Do Kwon still saw potential with blockchains and decentralization and chose to split the coin after the collapse.
Luna, the cryptocurrency associated with TerraUSD, or UST, is now worth $0 as the stablecoin has dramatically lost its $1 peg.
Why did LUNA crash? The Luna crypto crash was caused by its connection to TerraUSD (UST), the algorithmic stablecoin of the Terra network. On May 7, over $2 billion worth of UST was unstaked (taken off the Anchor Protocol), and hundreds of millions of it were quickly liquidated.
Amid the commendable sustenance of the Terra Classic (LUNC) burn campaign, the community has incinerated 36,536,033,484 (36.5B) LUNC tokens so far, representing 0.53% of the asset's total supply of 6.8 trillion tokens, about 0.61% of its circulating supply of 5.9 trillion.
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.
Terra Price Prediction 2024
After the analysis of the prices of Terra in previous years, it is assumed that in 2024, the minimum price of Terra will be around $$1.07. The maximum expected LUNA price may be around $$1.30. On average, the trading price might be $$1.10 in 2024.
Token. TerraUSD (UST) is the decentralized and algorithmic stablecoin of the Terra blockchain. Its value is pegged 1:1 to the US dollar, making it an ideal medium of exchange on DeFi and TraFi platforms. We support the Ethereum (ERC-20) version of UST, which is a multi-chain asset.
No. Our prediction model sees no possibility for Luna Classic to reach $1 cent in the future.
Why did Terra Classic crash? In the space of just one week in May 2022, UST and LUNA failed to maintain their peg against the U.S. dollar and plummeted dramatically, losing nearly 99% of their value. There were multiple reasons behind the crash, which caused investors to lose a total of around $60 billion.
The potential for large price swings should be considered and understood before investing. When it comes to Luna specifically, “the bigger risk” is that investors could be subject to losses if Terra's stablecoins are unable to hold their pegs, Hougan says.
LUNA price might hit a maximum of 3.63 by the end of 2023. Terra LUNA 2.0 price with a potential surge could go as high as $20.76 by the end of 2030. The current price of LUNA is $ 0.60594742.
Is Terra Classic dead? Terra Classic is not dead. While its value has declined, it still has community support, and developers are striving for new developments toward recovery, such as the burn mechanism. The LUNC coin has recouped a sizeable market cap, but the TVL is low while its dApps adoption is also low.
If Terra Luna can still survive, the prediction price of Terra (LUNA) of 2025 according to DigitalCoinPrice, will increase by over 105.05 USD. Furthermore, Gov. Capital predicted that LUNA price will be at 753 USD by the end of 2025. However, CoinPriceForcast anticipated that Terra has the potencial to rise to 200 USD.
Binance announced that it will relist LUNA/BUSD and UST/BUSD pairs for spot trading starting 14:00 UTC on May 13.
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You alone will be able to determine whether Terra (LUNA) is worthwhile to stake because it depends on your risk tolerance and expectations. There are no guarantees that staking Terra (LUNA) will lead to a successful outcome, but if you're ready to give up your LUNA tokens for a while, the rewards might be worthwhile.