To overcome the uncertainty of the crypto market volatility, developers created stablecoins, whose price is pegged to a certain asset or commodity. Terra was one of those projects, offering an algorithmic stablecoin, while the native token of the network was an ecosystem-powering element and the bouncer for the stablecoin. Terra blockchain got widely known for its collapse in May 2022, when the stablecoin lost its price and the native token went to zero. Read our Terra LUNA price prediction to see how the new token performed after the original blockchain was forked.
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LUNA Fundamental Analysis
Terra (LUNA) is a public blockchain protocol that emerged from the network now called Terra Classic after its collapse in May 2022. Terra Classic is a home for an algoritmic stablecoin TerraClassicUSD (UST). The native token of the project, now renamed to LUNC, collateralized UST. After the token crashed it devalued LUNA to almost zero with many holders losing millions. The project team then took an action to fork the chain, which was split into Terra Classic and Terra.
The founders of the project are Daniel Shin and Do Kwon. They decided to create a project that will promote price stability and usability. Before Terra Shin launched TMON, a major South Korean e-commerce platform, and later The Fast Track Asia, a startup incubator for entrepreneurs working on fully functional companies. Kwon also came to Terra after founding Anyfi, a startup providing decentralized wireless mesh networking solutions.
Kwon got criticized by some of the known and respected members of the crypto community, such as Vitalik Buterin and ChangPeng Zhao, and also by disappointed UST investors. After the fork of the Terra blockchain and the launch of the token, it was airdropped to the users that lost their money from investing in the LUNA token, now renamed to LUNC. The airdropped tokens were automatically staked to Terra validators. The users can change the delegator, but their tokens are the subject of a six-month cliff.
The original network was launched in April 2019 after almost 1,5 years of development. The goal of the project was to combine price stability with the wide adoption of fiat currencies and the censorship resistance of Bitcoin. The project was offering affordable settlement through its UST stablecoin, and also stablecoins pegged to other fiat currencies such as South Korean won, Mongolian tugrik, and the International Monetary Fund’s Special Drawing Rights basket of currencies.
Terra utilizes the Proof-of-Stake consensus mechanism based on Tendermint. Token holders have to stake their tokens as collateral to validate transactions on the network and receive rewards for that.
The new blockchain continues the idea and concept of the previous network, except for the support of UST stablecoin. It is supported by the vast community of project customers that call themselves LUNATICS. At its peak, the project achieved second place in total value locked. A lot of Dapps agreed to switch to the forked chain to continue their functionality. There are hundreds of developers that work on numerous decentralized applications.
LUNA is the native token of the Terra blockchain. It has a total supply of 1 billion tokens. The tokens are distributed as follows:
- 8% is allocated for the developer mining program;
- 1.5% is meant for the developer alignment program;
- 0.5% went for the emergency allocation to app developers;
- 20% is allocated to the community pool;
- 35% were airdropped to the pre-attack LUNA token holders;
- 10% went to pre-attack UST holders;
- 10% were airdropped to the past-attack LUNA holders;
- 15% were sent to the post-attack UST holders.
LUNA Live Price Chart
Right after its launch in May 2022, the price of LUNA started to grow exponentially and the token hit its all-time high of $19.54 on May 28. The price of LUNA fell on the same day to $3.63. In the coming week, it recovered over 50% of the price reaching about $7. But then the price of the token continued to decline until June 6, when it reached as low as $2.3.
Even though the token made a few attempts to recover the price, it didn’t go higher than $3.2. In the next 2 weeks, the value of the token was declining and reached $1.7 on June 19. It was followed by around a week of a stable price around the level of $2. At the end of June, the price went up to $2.4.
On July 1st the LUNA token was trading for $2.06, dropping after a short time rise. During the first 10 days of July, the value of LUNA rose slightly, reaching $2.26, but then the trend turned downwards and the price of Terra coin went down to $1.7. The price kept bouncing within those values until the end of July.
On August 1st LUNA jumped to $2.4, but then returned to the previous level. At the beginning of August LUNA price chart was at the level of $2.2 and it started to decline slightly in the next 10 days reaching $1.9. It stayed around the same level until the beginning of September, and then the price suddenly jumped up to $6.4 on September 11. It couldn’t remain at the same level for just another day and then started to drop. On September 14 to swap LUNA users paid only $4.2. In the next 2 days, the price almost halved reaching $2.8 on September 16.
After a short recovery to $3, the price of the LUNA coin continued to fall and reached $2.4, dipping to $2.1 at the end of September. At the beginning of October LUNA was traded for $2.4. On October 12 the price grew a little bit to $2.7. And after that LUNA was in a slight downtrend with its price dropping slowly. By November 7 the price of LUNA reached $2.4.
From November 8 the bears affected the crypto market again and LUNA dropped to $1.6 and remained around sea level. The short-term prognosis for LUNA is bearish.
LUNA Technical Analysis
After reaching an all-time high on August 24, LUNA’s price bounced back down, at the time of writing hovering around the resistance level at ~$27. This may well be a short setback since in the longer-term perspective price of Terra (LUNA) is still trending up.
High hopes for LUNA's future can also be justified by interpreting the latest developments as a bullish flag pattern: a consolidation phase is a necessary interruption to the price’s meteoric rise. In this case, all the positive LUNA predictions are probably right, and we may see it going to the moon very soon.
LUNA Price Prediction
LUNA Price Prediction for 2023
LUNA Price Prediction for 2024
LUNA Price Prediction for 2025
LUNA Price Prediction for 2026
LUNA Price Prediction for 2030
As it can be clear from the analysis cited above, LUNA (LUNA) projections are rather contradictory. There is no universal consensus either about positive or negative future LUNA price movements. Indeed, the future possible growth depends on various factors: announcements, new technological solutions of the LUNA projects, the crypto environment in general, legal position, and so on. We kindly remind you that before investing in any cryptocurrency, it is essential to do your own research (DYOR).
Should I invest in LUNA (Terra) cryptocurrency?
Yes, you should consider investing in LUNA (Terra) cryptocurrency, if you’re not afraid to step out of the familiar territory claimed by the largest cryptocurrencies like Bitcoin and Ethereum. As always with crypto, mind the risks, which are higher than for the traditional investments, but as it stands now, there’s reason to believe that positive LUNA price predictions will pan out.
Why do people think LUNA is such a good coin?
Many people think LUNA is a good coin because it has interesting tokenomics behind it. Terra is a rapidly growing ecosystem and LUNA is at its heart, so as long as there is a growing demand for Terra tokens and the necessity to balance Terra token prices, Terra (LUNA) will keep going up.
Will Terra (LUNA) crypto reach $100?
Yes, it’s in the realm of possibility for Terra (LUNA) crypto to reach $100. To get there, this token has to grow less than 4x, which it had easily done in the past. Some experts confirm this growth potential, with their Terra (LUNA) price predictions reaching those levels.
What is Terra (LUNA)?
LUNA is a balancing token in the Terra network, which is also a home for several stablecoins. LUNA can be staked to get rewards, as well as traded on the free crypto market. This has proved lucrative for many, as the token went through an explosive growth spurt as predicted by some of the positive LUNA price forecasts.
Can Terra (LUNA) coin reach $1000 at the end of 2025?
No, Terra (LUNA) probably will not reach $1000 at the end of 2025. This could be plausible only if demand for stablecoins on the Terra network grows very high. That would, in turn, cause a large part of LUNA supply to be burned, to keep stablecoins from deviating from Terra crypto price predictions. So, while not impossible, it is unlikely.
When will the Terra (LUNA) coin reach $100?
According to some experts, a good bet for when the Terra (LUNA) coin will reach $100 is 4–5 years. For example, Walletinvestor.com puts it close to this number in its Terra (LUNA) price prediction for 2025.
Is Terra (LUNA) a good coin to hold for the mid-term?
Yes, most LUNA coin price predictions agree that it’s a good coin to hold for the mid-term, quite a few LUNA long-term price predictions promise growth, too. Note that the Terra ecosystem also incentivizes people to hold and stake their LUNA in exchange for rewards, rather than getting rid of it short-term, so it’s definitely recommended to look into it, too.
What is the best exchange for buying Terra (LUNA)?
One can buy Terra (LUNA) on several large exchanges, including Binance, Huobi, and Bitfinex — those options are especially good if you want to buy your LUNA with fiat. If you’re looking into buying Terra with Bitcoin or another cryptocurrency, or want to explore non-custodial, instant exchange options — you’d get the best selection of them on SwapSpace.