Does Luna Still Have Potential to Reclaim Its Prestige?

Following the Terra ecosystem’s crash, LUNA was transformed into Terra Luna Classic (LUNC) and its price has been witnessing a strong recovery since then. After experiencing the all-time low on May 13th – when the value plummeted to $0.000000999967 – a 27,000% upsurge has taken place in it.

The LUNA of Terra was considered among the prominent subjects discussed during this year. LUNA operated in association with UST stablecoin and permitted people to speculate on the stablecoin’s growth. A remarkable growth was seen by the stablecoin and it turned into the biggest stablecoin in terms of its market capitalization. The ecosystem of Terra was supported by a few of the biggest as well as the well-reputed personalities in the whole industry.

These figures take into account Mike Novogratz of Galaxy Digital (who even tattooed LUNA onto the arm), Celsius, and Three Arrows Capital. The UST stablecoin lost the peg thereof several times during its entire timespan, however, was always capable of finally reclaiming its peg of $1. With the growth of the project, Do Kwon (its founder) thought that if something beyond LUNA backs UST then a great considerable benefit could be gained.

LUNA Dropped to the Historical Lows Letting No Room for Further Decline

As per him, the market members would have more confidence in this way. The level of confidence in the project was awe-inspiring and after the decline of that confidence, LUNA fell badly. The algorithmic stablecoin operated in a way that on losing its peg, a great extent of inflation was generated in LUNA, resulting in pushing the price backward. LUNA and UST’s symbiosis was finally the drop of both the coins and just in some days LUNA declined by ninety-nine percent in its price many times.

The respective collapse had eliminated numerous people’s life savings across the globe. Those people had faith in Terra’s founder and did not comprehend the level of risk they were going toward. Since the extreme decline of the project from the all-time highs thereof, LUNA’s price did have much room to drop further. After that episode, Do Kwon rebranded LUNA to LUNC.

LUNC Rises With New Enthusiasm, Indicating a Huge Growth Potential

The latest changes and modifications offered for LUNC take into account a burn mechanism of 1.2% for swap, targeting to turn LUNC into an inherently deflationary token. At the moment, several speculators are utilizing the venue as its volume has witnessed an elevation of up to 50% just in the previous 24 hours. It signifies that despite a full collapse LUNC may keep on working as a token available to be possessed with deflationary tokenomics. $1.8B is the LUNC token’s completely diluted market capitalization.