The version of the crashed Luna cryptocurrency is currently listed on trading platforms, and it’s off to a poor start. Followers of the Terra blockchain project voted to revive Luna, but not terraUSD, a seemingly “stablecoin” that plummeted below its projected stake to the dollar, prompting worries in the crypto market.
TerraUSD is an algorithmic stablecoin, sometimes known as UST. To keep a $1 value, it rested on the program and a sister token, Luna. In any case, as the cost of crypto plummeted, financial investors abandoned the stablecoin, dragging UST and Luna down with it. The previous Luna, now known as “Luna Classic (LUNC),” had a circling supply of more than $40 billion at its peak.
Luna is currently in the midst of another phase, dubbed Terra 2.0 by her investors. It is currently traded on platforms like Kucoin and Huobi. Even Binance, the world’s largest crypto exchange, is also listing this relaunched crypto.
Overall, with the Luna crypto meltdown still fresh in the minds of many Luna holders, here’s everything you need to know about this new iteration.
Its Price and Volatility
The Luna 2.0 price, as is customary, remains highly unstable in the first week after its release. Luna actually appears to balance out between $16 and $19 in the first few hours. Nonetheless, since peaking at $19.54, it has plummeted 75 percent to a low of $3.63 before resting at approximately $5-$6. The Luna 2.0 costs $8.67 two days after its launch, a 38 percent increase in 24 hours. This significant rise could have been attributed to the expectation of the Binance listing announcement, which occurred the day prior. Nevertheless, the value of Luna 2.0 is likely to fluctuate and remain unstable over the next few weeks.
Although many Luna 2.0 price predictions are flooding in from online streams and experts’ insights, no one can guarantee a definite price for the new coin. Regardless of how often airdrops are with crypto, the Luna 2.0 situation is what is going on. Its unusual environment makes any predictions even more difficult. The choice to mint 1 billion of this new Luna will form a major part of the Luna 2.0 value. This is a substantial reduction from the current Luna total supply of 6.5 trillion dollars. Regardless, it continues to be three times as prevalent as before the crash.
Luna 2.0 investors cannot rapidly exchange their new coins, regardless of their value. According to Terra, holders will receive 30 percent of their airdrop on the most remarkable day of release to work with the Luna recovery. The Luna 2.0 launching would also have a bearing on the Luna Classic value. Because many people purchased Luna Classic the day before Luna 2.0 was released, its price soared, only to plummet and then increase right after its debut.
Perhaps new investors are looking at the Luna 2.0 market valuation to better understand where it stands compared to other digital currencies. You should also know that being invested in crypto requires that you have some data at your fingertips. One of such important information is market capitalization. Interestingly, you can access these for free from websites like CoinMarketCap, Immediate Edge, or CoinGecko. Through the utilization of platforms like these, traders will know when it is safe to buy and sell crypto since the experts provide data and monitor the market movement 24/7.
Whilst 1 billion tokens will be produced, the process will be lengthy. Because of the investment period, the amount available for use upon launching will be significantly less than $1 billion. A few with huge amounts may have to stay more than a year prior to actually accessing their Luna investment.
Luna 2.0 has an initial supply of 210 million coins. With a price of $8.67, the market capitalization is about $1.8 billion, still significantly far below the $30 billion mark from the end of April 2022. Luna’s market capitalization ranks within the top 50 digital currencies. Luna 2.0 also sits on top of the original chain’s coin. With a market valuation of $837 million as of May 2022, Luna Classic had dropped 22 percent in just 24 hours. Investors of LUNC who are anticipating Luna 2.0 to shift should wait a while.
A Crash after Launch
Following the release of the Luna 2.0 in May 2022, new coin owners are closely monitoring the price movement. Existing Luna Classic holders will receive a designation of the 1 billion new Luna on the new chain once the Luna 2.0 crypto trading support is completed.
In any event, the way it was launched did not go well. Luna plunged as low as $4.39 mere hours after hitting a high of $19.53 on its first day of trading. Its price has since stabilized at roughly $5.90.
Experts are suspicious about Terra’s restored blockchain’s likelihood of succeeding. It should be capable of competing with several other reputed “Layer 1” blockchains, which support cryptocurrencies like Ethereum, Solana, and Cardano. Terra is releasing Luna tokens via an “airdrop,” with the majority leaning toward people who possessed Luna tokens and UST prior to their downfall, with the objective of repaying financial investors.
However, many financial supporters who were devastated by the incident are reluctant to accept Terra again because the project suffered from a “great breach in confidence.”
Terra bulls have a high chance of uniting together and launching a significant agreement as the fluctuation continues. This bullishness relies on the assumption that assets would often bounce back after a big shift. Given the recent 88 percent crash, such an average flip is likely to be larger, and given that the collapse was so abrupt, it looks reasonable that the recovery will also be abrupt and might occur during the next couple of days. The major indicator of this bullish trend will be a comeback over the 5 percent recovery line at $6.86. Continuing this, LUNA’s value could soar to a new high of $10.22.
However, Terra must venture to the transition point of the 88 percent incident in order for the average reversal to actually happen. While the average reversal assumption appears to be sensible from a practical perspective, Bitcoin’s linear inclination will still decide later. If the significant crypto goes through bidding, the LUNA value will most likely soon follow. If bears succeed in making a fairly low dip below $3.50, it will weaken the bullish claim and signal that a further collapse is more certain.