warning: The datasets shared in the following article were compiled from a range of online resources and do not reflect AMBCrypto’s own research on this topic.
Terraform Labs created the Terra USD stablecoin and the LUNA coin, both of which were released in 2019. TerraUSD was previously pegged to the LUNA coin so that the price of the former stabilized.
Here are the AMBCrypto price predictions for the LUNA from 2023 to 24
This currency pair’s journey has seen ups and downs. Do Kwon and Daniel Shin, a pair of South Korean tech entrepreneurs, founded Terraform Labs in Seoul in 2018. In 2019, they launched UST, a local stablecoin linked to LUNA. Stablecoins, like UST, were created to protect investors from the extreme price volatility of popular cryptocurrencies like Bitcoin. Here, the stablecoin must have a fixed connection to a fiat currency.
Since fiat currency is tied to reserves like gold, a stablecoin is tied to either a fiat currency (such as the US dollar) or a backing cryptocurrency. In this case, TerraUSD has been linked to Luna. But herein lies the conflict. Cryptocurrency is not equivalent to gold reserves. When the price of Luna destabilized, it also had an impact on the prices of terrestrial treasuries, and the entire stablecoin system collapsed in the second quarter of 2022.
The Stablecoin project aims to complement price stability and the widespread use of fiat currencies with the decentralized model of cryptocurrencies.
Even those with a vague knowledge of the cryptocurrency industry are aware of the horrific crash of LUNA and UST in May 2022. This collapse was instrumental in sparking the cryptocurrency crisis afterward.
LUNA was one of the top performers in the market at one time, with the altcoin once in the top 10 cryptocurrencies by market capitalization by the end of 2021.
Bloomberg a report As of May 2022 highlights the ongoing development that has taken place. In early May 2022, the Terra system collapsed when major investors began selling their tokens. This move caused a significant drop in the price of the coins. While the price of the floor cabinets has fallen to $0.10, the price of LUNA has fallen to nearly zero.
The cryptocurrency market lost about $45 billion within a week in the carnage that followed, causing the global market to crash. Terra’s management had hoped to buy Bitcoin reserves to buy more UST and LUNA coins until their prices stabilized, but the plan was unsuccessful.
Thousands of investors around the world lost large sums due to the accident. in it immediately In the aftermath, the Korean National Tax Agency imposed $78.4 million in corporate and income taxes at Do Kwon and Terraform Labs After an investor in Terra filed a police report against the founding partner.
In fact, an injured investor broke into Kwon’s home in South Korea. Then his wife asked the police for safety.
In July 2022, News1 Korea mentioned South Korean prosecutors have cracked down on 15 companies, including seven cryptocurrency exchanges, in connection with the investigation into the collapse of Terraform. More than 100 people who have filed complaints with the attorney general’s office are said to have incurred losses totaling about $8 million.
Just a few days ago, the Financial Times mentioned South Korean prosecutors have asked Interpol to issue a red notice against Kwon. on the other side , chirp He is not a fugitive from any relevant government authority. He added that the company is cooperating fully and has nothing to hide.
Much of the industry has warned the cryptocurrency community of the coming doom. Kevin Zhou, CEO of Galois Capital, was one such individual. he is He said That the outcome was inevitable because “the mechanism was defective and did not work as expected” but most did not care.
on me mayo 25, Bloomberg mentioned That a new version of LUNA was launched after a hard fork, as the new LUNA coin was no longer tied to the devalued UST coin. The old coin is called Luna Classic (LUNC) and the new coin is called Luna 2.0 (LUNA). Although the old cryptocurrency has not been completely replaced, its community may slowly fade away as more and more users migrate to LUNA 2.0.
The new initiative included airdrops of new LUNA tokens for those holding and driving Luna Classic (LUNC) and UST tokens. A large part of the minted currency will be devoted to development and mining. Currently, there are 1 billion LUNA tokens in supply.
Recently, the 1.2% tax credit proposal, called Proposition 4661, passed a board vote, which was confirmed in a tweet Written by Suggestions writer Edward Kim. This move was confirmed by Terra Rebels as chirp Of the 96% of the vote, 99% favored 1.2% tax burns.
The collapse of dual currencies has proven to be a harbinger of increased government regulation, if not outright opposition, within the crypto industry. Everyone has embraced the anonymous industry model, which is widely said to be the basis of the decentralized cryptocurrency market. But the moment people lost their investment, they rushed to government agencies for redress.
It was then that the government financial authorities found the opportunity to push for the implementation of rules and regulations in the cryptocurrency industry to address price volatility, money laundering, etc.
The entry of state-controlled corporate enterprises into the industry had already set the tone for what was to come. But this collapse reinforced this trend. Now, cryptocurrency entities, whether large or small, are likely to be supervised by central banks around the world. In such scenarios, it will be necessary to monitor how the industry is managed to maintain its anonymous and decentralized nature.
New Bloomberg a report He says the upcoming legislation would ban stablecoins such as TerraUSD, whose collapse led to a global crash of cryptocurrencies. The said bill is currently being drafted in the US House of Representatives. The bill would make it illegal to develop or issue “internally secured fixed coins.”
at recent days an interviewKwon said his confidence at the time was justified as the market success of his Terra ecosystem approached $100 billion, but his belief now “seems very illogical.” He acknowledged the possibility of having a baby there in the organization, but added, “I alone am responsible for any weaknesses that could have been presented to a short seller to start making a profit.”
Why are these predictions important?
The future of LUNA is a very important issue for the entire cryptocurrency industry. It was launched as part of the revamping strategy, and it hasn’t performed very well so far.
Transactions on the Terra 2.0 blockchain are validated through the Proof of Stake (PoS) consensus mechanism. The network has 130 auditors working at any one time. As a PoS platform, the strength of the validator is related to the number of tokens exposed.
How LUNA trades will determine the rate of not only this particular cryptocurrency but also a number of stablecoins in the market. If it succeeds in winning the trust of investors, the project will go a long way in boosting the cause of the stablecoin asset class.
In this article, we will describe the key performance metrics of the LUNA device, such as price and market value. We’ll then summarize what leading crypto influencers and analysts have to say about LUNA’s performance, along with the Fear & Greed Index. We will also briefly talk about whether or not you should invest in stablecoins.
LUNA price, size and everything in between
LUNA started its journey around $19 on May 28, 2022 and quickly dropped to under $5 the next day. At the end of May 2022, it was worth just over $11 but quickly rallied south with the start of June.
Over the next few months, the value of the LUNA device continued to fluctuate between $1.7 and $2.5. At press time, it is trading at $2.26.
Likewise, its market value is not as high as it used to be. Back in June 2022, its market capitalization topped $300 million, but it continued to swing between $210 and $300 for most of July.
The crisis that unfolded after the collapse of the dual currencies affected the entire course of the market. LUNA has been particularly vulnerable to volatile market conditions. The Russian-Ukrainian crisis and the increase in crypto regulations around the world have also limited the movement of the market.
LUNA Predictions for 2025
Before reading further, readers should understand that the market expectations of different cryptocurrency analysts can vary widely. Many times these predictions have been proven wrong. Different analysts choose different combinations of parameters to arrive at their predictions. Moreover, no one can predict the unpredictable social and political events that will ultimately affect the market.
Now let’s take a look at what various analysts have to say about the future of the LUNA 2025.
ease Blog Posts He claimed that experts, after analyzing Terra’s previous performance, had predicted that the price of LUNA would fluctuate between $7.26 and $8.62. They added that the average cost of trading during the said year would be approximately $7.46, with a potential return on investment of 384%.
The league is also remote Very optimistic in its assessment of LUNA’s future, with 2025 prices high and low at $52.39 and $69.18. You expect it to average $61.72 over the said year.
LUNA Outlook for 2030
The aforementioned Changelly blog mentioned that the maximum and minimum prices for the LUNA 2030 will be $48.54. and $57.68. The average price for a LUNA device during the cited year will be $50.24, with a potential ROI of 3140%.
Now the above is the latest forecast. Prior to the events of the past few months, analysts were more optimistic about LUNA’s fortunes.
Consider the Finder expert panel, for example. In fact, they projected a price tag of $390 by 2025 and $997 by 2030.
“Those like Ben Ritchie of Digital Capital Management have argued that the LUNA token will continue to gain as long as there are no clear rules for stablecoins. We believe LUNA and UST will have an advantage and will be adopted as the main stablecoin across the crypto space. The LUNA is burned to print the ground tank, So if the adoption of terrestrial treasuries increases, LUNA will benefit greatly. Having Bitcoin as a reserve asset is a good decision by Terra Governance.”
There were also opposing opinions. According to Demetrius Salambasis,
Algorithmic stablecoins are inherently fragile and not stable at all. In my view, LUNA will exist in a state of perpetual weakness.”
This is not all. In fact, at one point, there was also talk of the Terra emerging as the most mainstream asset.
Fear and Greed Index
If you are considering investing in LUNA, you must understand that it entered the market after a major crisis. It is still not listed on many exchanges due to market concerns.
We will also have to see how the LUNA developer and investor community behaves in the coming weeks. If they burn enough tokens to drive up the price, it could be good for his future. The continued efforts of the crypto industry, especially the LUNA community, can go a long way in restoring investor confidence in the market.
In an interview with Laura Shin Eun Podcast “Untethered”Kwon said he moved to Singapore from South Korea before the Terra ecosystem collapsed. So it should not be assumed that he fled to escape the authorities. He denied allegations that he was a fugitive from the police.
Well, lFirst month, The New York Times interviewed Ethereum founder Vitalik Buterin who claimed that Terra Luna team tried to manipulate the market to prop up the value of the original cryptocurrency. He also noted that many “smart people” said Terra was “fundamentally bad”.
We have to reiterate that market expectations are not static and can go completely wrong, especially in a volatile market like the cryptocurrency market. Therefore investors should exercise due diligence before investing in LUNA.