Terra Luna Classic (LUNC) is a blockchain protocol for hosting decentralized applications (dApps) and top-tier development tools. Its aim is to offer a next-generation decentralized finance (DeFi) experience by utilizing a proof-of-stake consensus mechanism. The protocol’s native token, LUNC, is mostly used for staking and governance purposes. Terraform Labs developed the Terra protocol in 2018. With the goal of creating a stablecoin designed to chase the price of a fiat currency and infuse the best features of fiat currencies and Bitcoin.
However, in 2021, Terra suffered an attack that exploited loopholes in its protocol leading to UST’s failure to maintain its dollar peg and the consequent loss of almost 100% of its value. Terra’s co-founder, Do Kwon, proposed a hard fork that eventually led to the creation of two Terra blockchains. The original chain was rebranded to Luna Classic (LUNC) while a new chain was launched with its native token called LUNA.
As of writing this article, Terra Luna Classic’s total circulating supply was $5863819763125.28, and its market cap was $507,574,321. In the past week, LUNC’s price has dropped by 2.60% and is currently trading at $0.000086. In the past 24 hours, LUNC has dropped by 1.70%, indicating a slight bearish sentiment in the crypto market.
LUNC Price Prediction for 2023
According to existing data, Terra Luna Classic price prediction for the most bullish scenario could value LUNC at $12.51 in 2023. In contrast, the most bearish scenario predicts LUNC’s value to be $0.000069 in 2023. However, it’s crucial to note that predicting LUNC’s price in the next two years is subject to various factors like market volatility. Competition, and technological advancement.
Factors That Could Influence LUNC’s Price in the Next Two Years
Several factors could influence LUNC’s price in the next two years. Firstly, the overall market sentiment towards cryptocurrencies could change, leading to a bullish or bearish trend. Secondly, the competition among DeFi platforms could escalate. Leading to a revision of Terra’s strategy and a consequent impact on LUNA Classic price prediction. Lastly, the technological advancements in the blockchain industry could challenge Terra’s protocol and reduce LUNC’s value.
Factors Affecting LUNC’s Price
The value of LUNC is closely tied to the success of its parent blockchain protocol, Terra. As an open-source blockchain protocol, Terra hosts a dynamic ecosystem of dApps and development tools. In addition to this. Terra also functions as a payments platform for an algorithmic stablecoin designed to chase the price of a fiat currency.
The recent burn tax implemented by LUNC’s community is a significant step toward the coin’s recovery from a meltdown that led to its devaluation. The tax, implemented at 1.2%, is aimed at recouping the losses from the previous meltdown. The community’s critical proposals on LUNC’s burn reflect their enthusiasm for the coin’s future and their commitment to ensuring its growth.
Market trends and external factors can also affect LUNC’s price. Recent bearish sentiment in the crypto market has had a minor impact on LUNC’s value. However, the long-term sentiment remains bullish, with speculations that LUNC could hit $0.00026 in 2024.
The Road Ahead for LUNC
LUNC’s community has shown promising signs of revival, with the ‘#LUNCcommunity’ trending on Twitter. The community’s proposals for LUNC’s burn and the implementation of the burning tax are a clear indication of their commitment to the coin’s revival. As LUNC continues to burn its circulating supply will reduce. Which in turn may lead to an increase in its value.
The potential functional or practical utility of LUNC in the coming times remains unclear. However, Terra 2.0 aims to inherit all the protocols and applications of the former network. LUNC may play a vital role in Terra’s growth. It is worth noting that caution needs to be exercised when investing in LUNC. Given the volatility of the crypto market and the limited information available on the coin’s fundamentals.