Terra LUNA Classic [LUNC] Price prediction 2025-2030: LUNC plunges as tensions rise

by · March 26, 2023

Disclaimer: The datasets shared in the following article are compiled from a set of online resources and do not reflect AMBCrypto’s own research on the subject.

As news of Terra co-founder Do Kwon’s arrest reached the crypto community, the price of Luna Classic (LUNC) fell sharply by 4% to $0.0001221. Terra co-founder Do Kwon, who was on the run since the Terra-Luna crisis, was finally arrested in Montenegro on March 23.

The result was also negatively affected by the banking crisis that followed the collapse of the crypto-friendly Silicon Valley Bank (SVB). Although other coins seem to be recovering, LUNC is trading at $0.0001219 at the time of writing.

The current market cap of LUNC is around $715 million, making it not the most sought-after token.

LUNC was at the center of the collapse of the Terra ecosystem in May 2022. The coin has also been hit hard by the collapse of the crypto exchange FTX last November. Its market cap has fallen from $1.5 billion to $1.0.4 billion since then.

Transactions on the Terra 2.0 blockchain are validated through the proof-of-stake (PoS) consensus mechanism.

The leading cryptocurrency, Ethereum (ETH), has also moved from a proof-of-work to a proof-of-stake mechanism. This has only made the competition among PoS blockchains fiercer.

The network has 130 validators working at any given time. As a PoS platform, it is considered to be a very environmentally friendly token.

Why do these estimates matter?

A stablecoin is meant to protect coin holders from the volatility of other cryptocurrencies. It is tied to either a fiat currency such as the USD or to a backing cryptocurrency. Terra USD (UST) was linked to Luna Classic (LUNC – then just LUNA).

This is where the problem began. A cryptocurrency is in no way equivalent to gold reserves. As LUNA prices destabilized, it also negatively affected UST prices, and the entire stablecoin system collapsed in May 2022.

In the early years, LUNC continued to perform well. And it was even among the top 10 cryptocurrencies by market capitalization by the end of 2021.

But the Terra system collapsed in May 2022, leading to a fork. It basically launched a new version of Luna. The Terra Ecosystem Revival Plan 2 was 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, performance after the May 2022 debacle has so far been less than celebratory.

But if LUNC trades well in the future, it will be a cause for 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 remained around $0.2 and $1.3 until April 2021. As the crypto market boomed in mid-2021, its price increased and reached $100 by the end of the year.

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 next month, the price began to fall and the Terra system collapsed in mid-May.

At press time, the coin was trading at $0.000121.

Source: TradingView

Bloomberg reported in May 2022 that the market lost approximately $45 billion in a week following the Terra collapse. Terraform Labs and its co-founder Do Kwon were fined $78.4 million in corporate and income taxes by the Korean National Tax Service.

On May 25, 2022, Bloomberg reported that the network 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 so far not performed well at all.

The market cap of LUNC similarly reflects market sentiment regarding crypto. Through 2019-20, it didn’t even reach $500 million, but started increasing in 2021.

Now, towards the beginning of February, it passed 1 billion dollars. And by the end of 2022, it was over 36 billion dollars.

LUNC’s journey continued for the next year as well, 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 attempting to revoke Kwon’s passport, after which he may be forced to return to South Korea. A request has been sent to the country’s foreign ministry to scrap the travel document, Bloomberg reported. An arrest warrant has already been issued against him and other members.

Recently, the Financial Times reported that South Korean prosecutors have reportedly asked Interpol to issue a red notice against Kwon. However, Kwon tweeted that he is not on the run from any interested government agencies 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, has negatively affected the entire crypto market. LUNC, under such circumstances, remains particularly vulnerable.

LUNC’s predictions for 2025

Before reading further, please understand that predictions for different cryptocurrency platforms and analysts vary widely as different analysts rely on different sets of metrics to reach their conclusions.

Quite a few times these predictions can go wrong. Also, no one can predict events like the Chinese crypto ban or the Russia-Ukraine crisis. Now let’s look at what different analysts have to say about the future of LUNC in 2025.

Telegaon predicts that the minimum and maximum prices of LUNC in 2025 will be $0.0089 and $0.028 respectively.

Other experts, after analyzing the past performance of LUNC, predict that the average price in the mentioned year will be $0.015.

However, Coinpedia is not so optimistic about the future of Luna Classic. It predicts that LUNC will trade as high as $0.002846 and as low as $0.001094 in 2025. The average price in the said year will be $0.001776.

LUNC’s 2030 Predictions

Telegaon remains optimistic about the future of LUNC also in 2030. It predicted that LUNC will trade as high as $5.23 and as low as $1.93 in 2030, with the average price at $3.11.

On the other hand, Bitcoin Wisdom predicted that LUNC’s price will continue to fluctuate between $0.002603 and $0.002834 in 2030. The average price in the said year will be $0.002719 according to the prediction.

Disclaimer

Now it’s worth addressing the elephant in the room as well. Estimates and opinions about the project before and after the crash have changed significantly in recent months. This means that there is a lot of uncertainty around. For example, back in March, Professor Carol Alexander, a member of Finder’s expert panel, claimed

“… as the name implies, it can actually go to the moon (for a while).”

On the contrary, there are others who believe,

“There is a lot of uncertainty surrounding LUNA right now –⁠ the project is really ambitious and the goal is admirable, but exactly what the effect on the LUNA token itself will be is unclear.”

Conclusion

So far, we have provided a brief 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 trusted. And you should do your own research before investing in LUNC.

The only thing that can save the coin is token burning, which will increase prices by reducing the oversupply in the market. It was already put to the test in September when Binance and other significant CEXs started burning LUNC tokens, sending the price of LUNC up 60% in just a few hours.

The cryptocurrency market remains very bearish and is likely to remain volatile in the coming months.

A recent Bloomberg report says upcoming legislation will ban algorithmic stablecoins like TerraUSD whose collapse led to a global crypto crash. The aforementioned bill is currently being drafted in the US House. The bill would make it illegal to develop or issue new “endogenous stablecoin securities.”

The New York Times interviewed Ethereum co-founder Vitalik Buterin last month who claimed that the Terra Luna team attempted market manipulation to increase the value of the original cryptocurrency. He also recalled that many “smart people” had stated that Terra was “fundamentally bad.”

In an interview with Laura Shin on the “Unchained” podcast on October 28, Kwon claimed that he migrated from South Korea to Singapore before the Terra community passed away. He also denied reports that he is on the run from law enforcement.

Kwon said,

“Whatever problems existed in Terra’s design, its weakness [in responding] to the cruelty of the markets, that is my responsibility and my responsibility alone.”

On November 5th, Terra Rebels tweeted that the first round of their lottery game had finally ended, with the winner walking away with over 24 million Terra Luna Classic (LUNC). More than 10.5 million LUNC were sent to the burn wallet. As we can see, such an effort is underway in one way or another.

According to a recent third-party audit by JS Held, a New York-based consulting firm, Luna Foundation Guard (LFG), the entity behind the defunct Terra ecosystem, spent $2.8 billion in crypto to try to defend its link to algorithmic stablecoin TerraUSD ( UST) in May. The audit also alleges that Terraform Labs (TFL), the Terra blockchain developer, spent $613 million defending the link.

Luna Classic has announced that it will reactivate Inter Blockchain Communication (IBC), a protocol to allow message sharing and trading with other blockchains. A member of the Terra Classic development team confirmed this on Twitter.

In terms of fundamentals, what could help such a breach is progress in implementing a proposal recently adopted by Terra Luna Classic validators. In particular, the community has adopted a plan to relink LUNC’s sister stablecoin, USTC.

As the broader cryptocurrency market stabilizes ahead of a busy week of macro events, including a flurry of key US jobs data and Fed Chair Jerome Powell’s testimony before the US Congress, LUNC bulls will be hoping the cryptocurrency can continue to find support above this . level.

Market experts are not sure if LUNC’s price can reach $1 this year, but the predictions are not entirely hopeful for investors. Whether the price goes up depends mainly on the Terra Luna Classic burn program, which will contribute to the token’s ability to sustain a long-term price rise.

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