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LUNC/USD forecast: Can Luna Classic come back from the dead?

By Ankish Jain

Edited by Jekaterina Drozdovica

10:00, 24 September 2022

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BTC/USD
Bitcoin / USD
17267.85 USD
388.4 +2.310%
ETH/USD
Ethereum / USD
1287.71 USD
50.4 +4.090%

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Can Luna Classic come back from the dead? – Photo: Shutterstock; SOROKAJPG

The abrupt collapse of the Terra ecosystem in May 2022 was a ‘black swan’ event, with damaging consequences for its investors and the whole cryptocurrency community.

Since the collapse of Terra, the cryptocurrency market has been in turmoil, with major coins like Bitcoin (BTC), Ethereum (ETH) losing value.

Before the crisis, UST, Terra's stablecoin, had a market value of more than $18bn. After the Terra network crash, Do Kwon, who created the blockchain technology firm Terraform Labs that developed the Terra ecosystem, designed a plan to revive the project. 

The plan saw a hard fork and the creation of a new chain, Terra (LUNA). The old Terra Chain was renamed Terra Classic (LUNC).

Will LUNC bounce back? Here we take a look at the latest news and other factors shaping the LUNC/USD forecast.

What is LUNC/USD?

The Terra network, a DeFi project, and its co-founder and creator Do Kwon rose to prominence in the cryptocurrency market in May 2022.

The price of TerraUSD (UST), an algorithmic stablecoin, started to de-peg from the US dollar on 7 May and fell to $0.35 on 9 May.

According to CoinMarketCap, its sister token, LUNA, which was meant to stabilise UST's price in a dual-token system, fell from $86.7 on 4 May to $0.00001675 on 13 May, a record low.

Do Kwon submitted the "Terra Ecosystem Revival Plan" on Terra's development forum. He suggested constructing a new blockchain via a hard fork and distributing the new tokens to community members in proportion to their holdings of UST and LUNA.

Validators on the network accepted the proposal and two weeks later the new Terra blockchain was revealed. The name of the new token was LUNA. The old chain was renamed Terra Classic (LUNC).

LUNC, which uses a proof-of-stake (PoS) consensus mechanism, served as the old network's native governance and utility token.

LUNC/USD price history

According to ICO Drops, LUNC’s initial coin offering (ICO) concluded in March 2019 at a token price of $0.80. As of 23 September, LUNC was trading substantially below its ICO price. According to CoinMarketCap, LUNC has delivered a return on investment (ROI) of -99.98%.

The LUNC/USD price action remained sideways from its inception until January 2021. In 2021, its price surged from $0.90 on 24 January to $21.98 on 21 March, an increase of 2,342%. During this period, the broader cryptocurrency market was bullish, and many cryptocurrencies achieved their all-time highs.

Amid bearishness and retracement in the broader cryptocurrency market, LUNC fell to $4.10 on 23 May 2021, a drop of more than 81% from the March high.

Between March and December 2021, LUNC enjoyed a robust bull run with brief bouts of retracement and peaked at $99.72 on 26 December, an 2,332% increase from the May low. It closed the year at $85.47.

The broader cryptocurrency suffered through bearishness in 2022. LUNC fell to $46.27 on 30 January 2022, a drop of more than 53% from the December high.

LUNC regained the momentum and achieved a record high of $119.18 on 5 April 2022. However, the LUNA-UST collapse sent LUNC down to its all-time low of $0.00001675 on 13 May.

LUNC gained in August. The price rose from $0.00008666 on 19 August to its 90-day high of $0.0005888 on 8 September, a rise of almost 580%.

As of 23 September, LUNC was trading at $0.0002733, down nearly 54% from the 90-day high, with a market capitalisation of $1.68bn.

DOGE/USD

0.10 Price
+2.820% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 22:00 (UTC)
Spread 0.0015047

ETH/USD

1,287.71 Price
+4.090% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 22:00 (UTC)
Spread 5.50

XRP/USD

0.40 Price
+3.380% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 22:00 (UTC)
Spread 0.00434

LUNC/USD

0.00 Price
+5.190% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee -0.0500%
Overnight fee time 22:00 (UTC)
Spread 0.00000719

LUNC/USD news and price drivers

Terra Classic has undergone several important milestones, which may drive the LUNC price.

Listing on XGo

The Terra Classic community voted in September 2022 to implement a burn mechanism, which was formalised by the passage of governance proposals 3568 and 4159.

Consequently, the LUNC protocol will implement a 1.2% tax burn on all on-chain transactions, including online and wallet contract interactions inside the Terra Classic ecosystem.

By listing LUNC on its platform, the XGo cryptocurrency exchange has also indicated its support for the tax burn.

Do Kwon absconding

A South Korean court has issued a warrant for Do Kwon's arrest. As of 23 September, Do Kwon's whereabouts are unknown. The Financial Times reported that South Korean police have asked Interpol to issue a "red alert" for him.

Meanwhile, the Singapore Police Force confirmed to the media that Kwon had left the city-state. Kwon was originally believed to be in Singapore.

In defence, Do Kwon claimed on Twitter that he is not hiding from the authorities, and is collaborating with them and has nothing to hide.

LUNC/USD forecast for 2022 and beyond

According to Cryptorank, LUNC’s on-chain activity remained flat between June and August. It finally started to advance in September when the token transfer count increased from 4,930 on 1 August to 15,234 on 1 September, a rise of 209%.

Meanwhile, according to the LUNC/USD forecast from CoinCodex, based on technical analysis on the coin, as of 23 September, the token’s price could reach $0.000418 on 30 September 2022.

Algorithm-based forecasting services gave mixed long-term Luna Classic to US dollar forecasts.

According to Wallet Investor’s LUNC/USD forecast for 2022, as of 23 September, the coin could be an “awesome” long-term investment. The site expected the average price to hit $0.000454 by the end of 2022, $0.002052 by the end of 2025 and $0.00297 by September 2027.

DigitalCoinPrice’s LUNC/USD prediction saw the average price hit $0.000281 in 2022, $0.000617 in 2023 and $0.000852 in 2024. The site’s LUNC/USD forecast for 2025 suggested that the token could rise to $0.00109, $0.00272 in 2029 and $0.00511 in 2031.

According to Price Prediction, LUNC could average at $0.00015058 in 2022 and $0.00048012 in 2025. Price Prediction’s LUNC/USD forecast for 2030 indicated that the coin could reach $0.003.

When looking for LUNC/USD predictions, remember that analysts and algorithm-based price targets can be wrong. They are based on technical analysis and historical price action. Past performance is no guarantee of future results.

It’s essential to conduct your own research before trading. Remember that your decision to trade should depend on your expertise in the market, the spread of your portfolio, and how comfortable you feel about losing money. You should never trade money you cannot afford to lose.

FAQs

Why has LUNC/USD been dropping?

Since the collapse of LUNA and UST in mid-May, most investors have lost faith in the Terra community. Moreover, the cryptocurrency market as a whole is experiencing a bearish period amid inflationary fears and risk-off sentiment. These factors have contributed to an unfavourable LUNC/USD outlook.

Will LUNC/USD go up or down?

According to Wallet Investor’s LUNC/USD forecast for 2022, as of 23 September, the coin could be an “awesome” long-term investment. The site expected the average price to hit $0.000454 by the end of 2022, $0.002052 by the end of 2025 and $0.00297 by September 2027. Note that algorithm-based forecasts can be wrong.

When is the best time to trade LUNC/USD?

Cryptocurrency exchanges operate 24 hours a day, seven days a week. Your trading strategy and  risk tolerance will determine the best time to trade LUNC. Overall, LUNC is a very risky cryptocurrency asset; thus, you should conduct your own research and analysis before trading.. Never trade money that you can't afford to lose.

Is LUNC/USD a buy, sell or hold?

According to CoinCodex’s short-term LUNC/USD forecast, as of 23 September, the market sentiment for LUNC was bearish. Note that algorithm-based predictions can be wrong. 

It’s essential to conduct your own research before trading. Remember that your decision to trade should depend on your expertise in the market, the spread of your portfolio, and how comfortable you feel about losing money. You should never trade money you cannot afford to lose.

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