In the ever-evolving landscape of blockchain technology, the LUNA token has emerged as a key player within the Terra ecosystem, propelling innovation and redefining the possibilities of decentralized finance (DeFi). The Terra ecosystem has undergone a significant transformation, leading to the emergence of a new era for the LUNA token. Following a noteworthy network fork, the new LUNA token has become a driving force behind Terra's blockchain evolution, revolutionizing decentralized finance. Read our LUNA token price prediction to see if the asset can show some gains in the near future.
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LUNA Fundamental Analysis
Terra (LUNA) is a public blockchain protocol that has undergone a significant transition from its previous iteration, Terra Classic. Originally known as Terra Classic, the protocol introduced the algorithmic stablecoin TerraClassicUSD (UST).
The development of Terra Classic commenced in January 2018, and the blockchain was officially launched in April 2019. Its primary goal was to combine the stability and widespread acceptance of fiat currencies with the censorship-resistant properties of Bitcoin (BTC), providing fast and affordable settlement solutions through its UST stablecoin. Terra Classic offered stablecoins pegged to various fiat currencies, including the U.S. dollar, South Korean won, Mongolian tugrik, and the International Monetary Fund's Special Drawing Rights basket of currencies.
The Terra network was founded by Daniel Shin and Do Kwon. They co-founded Terraform Labs, the company behind the development of the Terra blockchain. Daniel Shin serves as the CEO of Terraform Labs, while Do Kwon is the co-founder and the current CEO of Terraform Labs. They launched the Terra blockchain in 2018, with its mainnet going live in April 2019.
In July 2021, Terra successfully secured $150 million in funding from notable investors such as Arrington XRP Capital, Pantera Capital, Galaxy Digital, and BlockTower Capital. The funds were allocated to Terra's Ecosystem Fund, which supports various projects on the Terra blockchain. This funding round came after a previous successful raise of $25 million in January of the same year.
However, in September 2021, Do Kwon, the CEO of Terraform Labs, received a subpoena from the U.S. Securities and Exchange Commission (SEC) requesting his testimony regarding Terra's Mirror Protocol. The following month, Kwon and his company took legal action against the SEC, alleging that the subpoena had been improperly served. They also claimed that the SEC had failed to maintain the confidentiality of the investigation, as Kwon was served with the subpoena in person at a conference.
However, in May 2022, a bank run on UST resulted in its devaluation and subsequently caused the value of LUNA to plummet close to zero. This event led to the launch of a new chain, resulting in the coexistence of Terra Classic and the revamped Terra. Following the introduction of "Terra 2," the native token of the revamped network underwent a rebranding and inherited the name LUNA, representing the new era. Simultaneously, the token associated with the previous blockchain was renamed to Luna Classic (LUNC), distinguishing it as the token of the old Terra network.
The new Terra blockchain, also referred to as Terra 2.0, has inherited the foundations of Terra Classic while bidding farewell to the UST stablecoin. The development of Terra 2.0 will be spearheaded by the passionate LUNA community, affectionately called "LUNAtics," who played a crucial role in Terra Classic's success. The focus will be on evolving the world-class user experience (UX) and user interface (UI) that propelled Terra Classic to second place in total value locked (TVL) at its peak. Many decentralized applications (DApps) have already committed to migrating to Terra 2.0, ensuring the continuity of their functionality within the revamped ecosystem.
The LUNA 2.0 token has a total supply of 1,004,262,701 LUNA with 277,959,485 coins in the current circulation.
LUNA Live Price Chart
A year ago the LUNA token reached its all-time high of 19.54, and from that time the LUNA price chart was declining. In 10 days from the end of May 2022 till the beginning of June, the value of LUNA dropped from $10.72 to $2.1. As the volatility of the crypto market affected LUNA token, its price stayed at that low level during the whole summer.
Only after September 9, 2022, the price of LUNA finally saw a raise. In 1 day the value of the LUNA coin jumped to $6.4, but couldn’t remain at that high level for a long time, and in one week dropped to $2.7. By the end of the month the price of LUNA declined even more and on September 26 it dipped to $2.1. The LUNA token price then recovered to the level of around $2.6 and stayed stable almost till the middle of October. At that time the price of LUNA went a little bit up reaching $2.8, but then dropped down to the same level where it stayed till the beginning of November.
On November 10 the price of LUNA dropped again and established a new level. Till the middle of December, the LUNA price chart was at around $1.6. In the second half of December the price of Luna went down more to $1.3. Luna was trading at this level till the beginning of January, when the LUNA price started gaining value. By January 24, 2023 LUNA token price reached $2.17, but after that point, the LUNA to USD price chart started declining.
By March 10 the price of LUNA reached the lowest point of the period and was trading for $1.2. The price level stayed stable from that time but was slowly moving in the downtrend, making the value of LUNA steadily decrease. By the end of May, the value of LUNA reached $0.88, and the price chart continues moving in a downwards trajectory. However, some market analytics predict a price rise for the LUNA token in the near future, while others are sure that the downtrend for the LUNA token most likely will continue with the possibility of minor price fluctuations.
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
Should I invest in LUNA (Terra) cryptocurrency?
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What is Terra (LUNA)?
Can Terra (LUNA) coin reach $1000 at the end of 2025?
When will the Terra (LUNA) coin reach $100?
Is Terra (LUNA) a good coin to hold for the mid-term?
What is the best exchange for buying Terra (LUNA)?
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).
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