Friday, September 30, 2022

LUNC Price Prediction: Is Terra Luna Classic ‘The Cullinan Diamond’ of Crypto?

At the start of 2022, Terra’s LUNA Coin was the most widespread cryptocurrency on the market. But a huge implosion pushed the Terra Network to lose a lot of confidence and the value of the LUNA Coin descended. But is there still a chance that the LUNA Coin will become valuable again in the future? This article is all about LUNC price prediction. Let’s take a look at it in more detail.

What is the LUNA Coin?

The LUNA Coin is the cryptocurrency of the Terra Network. Terra has assigned itself the mission of utilizing algorithms to keep the stablecoins price stable. With this, Terra wants to build entirely decentralized, algorithmic stablecoins that are separate from the support of a physical currency. 

The project seeks to incorporate price stability and the availability of FIAT coins with the decentralized configuration of bitcoin and other cryptocurrencies. Terra wants to create a huge ecosystem of its own, in which several of its own stablecoins would be built. The project was launched in 2018 by Do Kwon and Daniel Shin. The project is driven by Terraform Labs. Terra created its own algorithmic stablecoin TerraUSD. The LUNA Coin is liable in the network for confirming that the stablecoin price is stable.

Why did the LUNAC price rise so massively?

The LUNAC did not witness substantial growth in the first 2 years of the project. Only in 2021 coin saw the price rise. At the start of 2021, the price was $0.65. In March the price climbed above 20 USD. After a slight decline over the spring, LUNA then burst in the second half of the year.

The LUNA price grew massively in winter 2021. During Christmas, the price touched $100 for the first time. While most cryptocurrencies witnessed heavy losses in December and January, LUNA continued to grow. In early April, the LUNA token then touches an all-time high of $116.

In 2021 and also in early 2022, the Terra network encountered huge hype, which also took the LUNA token forward. This was mostly because Terra’s vision of creating completely decentralized stablecoins was extremely favored. Stablecoins have played an increasingly significant role in the crypto market in recent years. The top 3 stablecoins Tether, USDCoin, and BinanceUSD are in the top 6 of all cryptocurrencies by market capitalization.

But all major stablecoins are centralized so far. They are supported by a collection of FIAT to keep them stable. As such, they cannot be decentralized. Terra desired to revise this and use algorithms to specify and maintain stable its own stablecoins. As a result, TerraUSD became more and more prevalent. The new stablecoin from Terra somewhat climbed into the top 15 cryptocurrencies. The LUNA token confirmed that the value of the TerraUSD was stable.

LUNC Price Prediction: Can the LUNA Coin rise again in the future?

In April 2022, after the huge gains in the LUNA Coin, the LUNA price unexpectedly crashed. From $82, the price abruptly dropped to $0.0001 within a few hours. This price drop was a total implosion of the LUNA coin. The total faith in the Terra Network and the LUNA Coin was lost.

The sudden implosion at Terra (LUNA) was one of the most significant events in the crypto market in early 2022. Investors had rarely witnessed such huge destruction in the market. At the time, the LUNA coin was in the top 10 cryptocurrencies. 

The reason for the destruction was the hasty decline in the price of TerraUSD. The LUNA Coin was no longer capable to guarantee that the stablecoin TerraUSD could be maintained stably in price. This was the exceptional selling point of the network. Terra provided investors great hope that decentralized stablecoins could soon launch themselves. With the devaluation of the TerraUSD, faith in the network decreased.

Unexpectedly, there was huge selling of the LUNA coin, driving the price to fully implode. The crash of Terra or the LUNA coin was likely the biggest implosion of a profitable cryptocurrency in the recent history of the crypto market.

LUNC Price Prediction: Is Terra 2.0 a success so far?