After the recent Luna price crash, holders are waiting to see how the new chain performs. LUNA was down by 20 percent before the new chain launched, but has made more than a 100% jump in just 24 hours. With a market cap of $700-750 billion, the classic coin is trading at a price below the new one, but has closed the gap. What will happen next? Let’s take a look at the most recent price data.
LUNC is the native token of the Terra Luna blockchain. After the UST/Luna crypto asset collapsed, the token was renamed Luna Classic (LUNC). The rename came about as a result of a hard fork, in which the Terra chain split into two different chains. During the hard fork, the new chain has a 6.5 trillion circulating supply, and both of them are considered equal in value.
On May 28, 2022, the Terra blockchain launched its new network. This new network adopted the name of the original token, Luna (LUNA). The new coin was introduced on May 28th, 2022. Both tokens were renamed to better match the new name. Despite the recent volatility in the cryptocurrency market, LUNA continues to grow in value as the LUNA project moves toward the 2020s. However, investors should be cautious before investing in the cryptocurrency market.
Initially, the main purpose of the original Luna was to act as a twin token to terraced (UST), a cryptocurrency that was designed to remain at a constant price tied to the US dollar. However, this goal was short-lived. As a result, UST entered a hyperinflationary spiral after May 2022, when the algorithm that was supposed to back the UST began to produce trillions of new tokens. Consequently, UST lost nearly one hundred percent of its value. The original Luna, named Luna Classic (LUNC), was worth $119 in early April 2022.
In addition to the ICO, the LUNC coin is also expected to hit $0.00062 in the coming months. It is currently ranked 216 in terms of market capitalization. Analysts believe that LUNC will begin a bullish trend in 2021, and they think that it is unlikely to fall below $0.00001. Despite its current price, this prediction appears to be reasonable as long as investors are aware of the cryptocurrency market’s volatility and the need for long-term investing.
As an alternative to UST, Anchor has proposed using Luna as collateral to back up UST. Upon successful completion of the burn, LUNC will be burned in the form of a 1.2% tax burn. While this method may not seem terribly efficient, it will help the price recover in the long run. So, for now, there’s no need to panic – we’ll have a chance to see a stable LUNC price in the coming days.
Despite the shaky start, the LUNC coin continues to trade heavily, and many holders of the older version are wondering what to do with their old tokens. While this coin’s price continues to drop, the Terra backers have argued that the community voted for the launch of a new version called Terra Classic. Despite the lack of a stablecoin pairing, the LUNA coin has a small supply limit of one billion coins and a maximum circulation of one billion.
LUNA – What is Luna and How Do I Trade It?
What is LUNA and how do I trade it? In this article, we’ll discuss the basics of the Luna currency and the Terra protocol. The protocol is designed to provide network security and validate transactions. It also allows traders to exchange LUNA for other fiat currencies and maintains a peg that encourages traders to swap their LUNA. LUNA also serves as the primary reserve currency for Terra and acts as a protocol staking token. In addition to being a reserve currency, LUNA is also used as a reward for blockchain validators.
TerraUSD is a stablecoin pegged to the US dollar. Its supply is controlled by an algorithm. If the price drops below this target, the protocol automatically mints new TerraUSD coins and sells them on the open market. Those who want to take advantage of this price stability can exchange one UST for one US dollar worth of Luna. These swaps take place until there is a sufficient supply of new UST.
LUNA is backed by LUNA, and LUNA’s value rises, a portion of it is burned. This burning process can be highly deflationary in the long term, as LUNA’s supply rises and LUNA falls. If LUNA is perceived as unstable, the value of LUNA may also fall. For this reason, LUNA’s value briefly depreciated following the Wormhole hack, which caused a price crash in LUNA. The LUNC USDT currency pair is also used on exchanges.