After nearly five months of inactive price action, Terra ecosystem native token LUNA made a strong comeback last week. This comeback comes after the crypto market has yielded returns amid ongoing macroeconomic concerns. On Friday, LUNA, which is traded on some exchanges under the name “LUNA2”, broke the $2.15 resistance. Thus, it rose roughly 307% to reach $7.65. LUNC, on the other hand, was able to achieve larger profits.
Terra ecosystem returns with LUNA and LUNC
cryptocoin.com As we reported, LUNA’s rise came after 99 percent depreciation in May as the UST lost its stability. The collapse of the Terra ecosystem with UST and LUNA took the entire market with it. In particular, stablecoins such as Tether and DeFi protocols have been hit by this collapse. However, since Terra’s eruption, the Terra ecosystem has been trying to bounce back. Terraforms Labs, the firm behind the Terra project, has split the platform into Terra Classic (LUNC) and LUNA 2.0.
LUNA owed its last week’s rise to stock market listings and the new airdrop. However, there is one LUNA token that has outperformed LUNA for much longer. This token is Terra Classic (LUNC). LUNC has risen over 37,000% in recent months. In fact, LUNC increased by over 500 percent between August 20 and September 7. However, the altcoin’s pump has officially stopped following the recent rise of LUNA. Behind the recent rise of LUNC was the new burning program and the support of this program by DEXs.
LUNC up 37,000%
Terra Classic has gained 37,000% since June, when it was trading at $0.00005. The altcoin was trading at $0.00036 at the time of writing. However, the rise of LUNA paused its 3-month rally. At this point, the famous analyst Michael van de Poppe evaluated the LUNC price and shared his expectations. He questioned whether LUNC would reach $1 in the future.
When will the Terra Classic reach $1?
According to Poppe, the data shows that LUNC could clinch the $1 price point under two conditions. The first condition is for LUNC to reach a market cap of $6.9 trillion, which is roughly seven times the entire crypto market cap. The second condition is that the total supply of the altcoin returns to $40 billion. According to the first condition, the altcoin project must reach a value higher than Japan’s GDP. This is unlikely.
The second condition is time dependent. It will take a very long time to burn 6.86 trillion LUNC, which is equivalent to 99.42% of the total supply at a burn rate of 1.2%. Even assuming Japan has as much market cap as its GDP, it takes years. According to a Reddit user’s analysis, it takes 7 halvings to reduce supply by 99%. Therefore, from a realistic point of view, we should look at somewhere in the 3-9 years range.
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