Terra Classic (LUNC) continues to show extreme volatility in the market on a massive amount of trading volume.
The coin – often referred to as Terra Luna Classic – is down 4% over 24hrs but remained in the top 10 by trading volume in the same time period with $440 million of LUNC traded.
Despite its extreme volatility, LUNC remains 7% up in the past seven days at the time of writing and more than 30,000% up from its May low following the de-pegging and collapse of the original Terra Luna coin and UST stablecoin.
Price Prediction – Can LUNC Reach $1 by 2023?
Terra Classic is now a community-led coin with very little real-world utility.
While the voracious community has driven incredible gains over the last six months, the possibility of LUNC reaching $1 appears slim without drastic action and change.
Trillions of new coins were created when the protocol spiraled out of control and the current supply of LUNC stands at more than 6 trillion (6,000,000,000,000) – a mind-boggling number that currently makes it near-impossible for LUNC to ever reach $1 in its current state.
For context, the market cap of the entire crypto space is currently less than $1 trillion and, effectively, to reach $1 every single cent in every single crypto coin would have to be redirected to LUNC – and then multiplied by more than six.
However, there are some reasons for cautious optimism.
Staking has been live for a number of weeks with millions of coins taken off exchanges by the community.
Thanks to community efforts and feedback the world’s largest exchange, Binance, is now burning all trading fees collected from LUNC trading.
The burn started on September 21 and, according to the exchange, nearly 5.6 billion LUNC tokens – equating to approximately $1.8 million – were sent to a burn address.
The burn will be ongoing with a weekly report released every Tuesday and there is hope other exchanges will follow Binance’s lead.
The LUNC community is currently pushing another exchange, KuCoin, to adopt a burn mechanism and asking Coinbase to list the token, given its huge volume.
It was also reported that Lithosphere developers Kaj Labs will burn 2.5 trillion LUNC in their new Finesse series of games and have facilitated $50 to $100 million to facilitate the burn.
If true, that burn would drastically slash the supply of LUNC and drive up its price.
However, the news was met with a mixed reaction by the LUNC community, with one prominent member, LUNCDAO, claiming the press release was “dishonest marketing to get viral engagement”.
Terra Luna Classic reaching $1 still seems a very long way off and from its current price would mean growth of more than 300,000%.
That is not to say that it will not continue to make investors good gains in the short, medium and long terms, but without a significant slashing of the supply soon, it appears unlikely to see that kind of growth in the next 12 months.
Further, LUNC’s lack of utility makes it more open to volatility and attractive to speculative traders – pumps are open to being followed by dumps as investors take profits rather than hold as there is little long-term value in the project.
One alternative project that offers a lot of real-world utility is IMPT, a new green project that wants to help solve the climate crisis by offsetting users’ carbon footprints – $500,000 has been raised in the first 48 hours of the presale.