Terra LUNA, a promising crypto ecosystem made new crypto millionaires in 2021. The team had a mission to make cryptocurrencies more attractive to investors via an algorithmic stablecoin UST.
Unfortunately, the project failed to a liquidity attack on an affiliated protocol (Anchor Protocol). As a result, the LUNAC (LUNA Classic) price slumped by 99.9% on 09 May ’22.
To rescue the project, the community passed a proposal dubbed Proposal 1623 that led to today’s LUNA 2.0. We’ll cover more on Proposal 1623 in the LUNA 2.0 history.
As much as we can’t tell you not to buy or to buy this new LUNA 2.0. We’ll like to share our analysis and price predictions of other top crypto firms. Hopefully this will help to guide your judgment as you decide if LUNA is a good investment for 2022.
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Let’s dive into it starting with a history of the LUNA token.
1.0 LUNA 2.0 History: Inception Story
Founded by Daniel Shin and Do Kwon in 2018, the Terra blockchain was born as the duo focused on stable prices and usability. They were positive that this approach would drive the rapid adoption of blockchain technology and cryptocurrencies.
Earlier in their careers, Daniel co-founded Ticket Monster and Kwon founded Anyfi, a startup that provided decentralized wireless mesh networking solutions after working as a software engineers at Apple and Microsoft.
At inception, Terra’s blockchain protocol was designed to power price-stable global payments, using fiat-pegged stable coins. By combing the stability and wide adoption rate of fiat currencies and BTCs censorship resistance, the Terra blockchain offers affordable and high-speed settlements.
The Terra ecosystem suffered a liquidity attack that led to the de-pegging of the UST (stablecoin) from LUNA hence the birth of LUNA 2.0 and LUNA Classic [LUNAC] after the community-led proposal (Proposal 1623).
On May 27, 2022, the Terra community voted in support of Proposal 1623, hence the revival plan that hard-forked Terra into its new Terra blockchain (LUNA 2.0) leaving behind LUNA Classic (LUNAC) the older chain.
Terra LUNA is currently valued at 1.219 Billion USD at press time according to readings on coinmarketcap.com.
A major part of Terra’s value proposition was to replace the complicated payments value chain, which includes credit card networks, payment gateways, and banks by using a single blockchain layer, this way Terra can offer cheaper transaction fees.
However, following the collapse of the now Terra Classic, and hard-fork, the new Terra LUNA 2.0 now proceeds into the future without its algorithmic stablecoin UST but chose to maintain its ecosystem with over a hundred developers working on multiple decentralized applications DApps.
3.0 Fundamental Analysis
Terra (LUNA) has a supply of 1 billion tokens to be distributed as follows:
Developer mining program: 8%
Essential app developers earn a share of the mining program proceeds pro-rata to the amount of TVL every quarter for 4 years.
Developer alignment program: 1.5%
Protocol teams that were live in Terra Classic divide this allocation weighted by the last 30-day TVL from the Pre-attack snapshot – 1-year cliff, 3-year vesting thereafter. Accommodations will be made for apps where TVL is not applicable.
App Developers’ Emergency allocation: 0.5%
Immediately after network launch to provide for runway while they build out the product. Commit to returning funds if the product has not been launched in 1 year.
Community pool:
20%
Controlled by staked governance
LUNA holders (Pre-attack): 35%
All bonded / unbonded Luna, minus TFL at “Pre-attack” snapshot; staking derivatives included.
For wallets holding < 10k Luna:
30% unlocked at genesis; 70% vested over 2 years with a 6 month cliff
For wallets holding < 1M Luna:
1-year cliff, 2 years vesting thereafter
For wallets holding > 1M Luna:
1-year cliff, 4 years vesting thereafter
Pre-attack aUST holders: 10%
500K whale cap – covers up to 99.7% of all holders but only 26.72% of aUST.
Unlocked at genesis (30%);
Vested over 2 years thereafter with 6-month cliff (70%)
Post-attack LUNA holders: 10%
Staking derivatives included
30% unlocked at genesis;
vested over 2 years thereafter with a 6-month cliff (70%).
UST holders Post-attack:
15%
Unlocked at genesis 30%;
Vested over 2 years thereafter with a 6-month cliff (70%).
Definitions:
“Pre-attack” snapshot to be taken at Terra Classic block 7544910 (2022.05.07 22:59:37+08:00).
“Post-attack” snapshot to be taken at Terra Classic block 7790000 (2022.05.27 00:38:08+08:00).
All tokens locked or vesting is staked at the genesis and must be unbounded to become liquid.
Furthermore, Terra committed to burning the remaining 1B UST from the community pool to reduce the outstanding debt from the Terra ecosystem. The LUNA airdrop was scheduled for May 28, 2022, at 06:00 GMT.
4.0 Prediction for Current Year 2022
The LUNA token rose to the spotlight as a top 20 token on coinmarketcap.com following a steady rise in its price to the $111.578 all-time high.
The project has been a steady yielding token for stakers till the regular bearish divergence on the monthly chart above signaled an early warning sign for a price reversal, though we did not anticipate a price slump of 99.0%.
The LUNAUSDT breached the previous low of $0.074 on 01 December ’19 to set a new low at $0.00000060 on May ’22.
There’s no doubt the LUNA price will close bearish in May ’22. However, the recent Proposal 1623 confirmed the price slump as a volatility oversold signal, which implies we should expect more stable price dynamics for the LUNA 2.0 token.
LUNA 2.0 now trades above the $5.0 mark at press time with the potential to stay above the level as the developer and user interest grow on the network.
On the other hand, in the case of a prolonged crypto-wide bearish trend, we predict a minimum price of $0.1514 and a maximum price of $12.50 for the LUNAUSDT in 2022, starting from the recent hard fork.
The above annotated weekly chart shows the on-chart RSI (4) in the oversold area, an indication that we can still see lower prices for the LUNA 2.0 token, which could enable you to get the LUNA 2.0 token at a price discount at the minimum price zone of $0.0313 and 0.1514, both levels corresponds with 38.2% and 50% Fibonacci levels respectively.
However, a weekly price close above the $7.30 high will confirm a short-lived crypto winter and head for the maximum price direction.
5.0 Prediction for the Next Year 2023
Towards the end of 2023, we expect the LUNA price to exit its oversold state from 2022 with the relative strength index confirming a build-up of momentum leaving the minimum price at $2.00 and the 2023 maximum price at $25.00.
By the end of 2023, we predict the maximum 2023 LUNA price at $25.00 and its minimum price at $2.00. These numbers, particularly the maximum price, align with the 50% Fibonacci ratio, considering the 01 December ’19 and 01 April high-low range.
6.0 Prediction for the Next 5 Years
We’re quite positive about the recent turn of events with the newly forked LUNA 2.0 and confident that an increase in developer interest and innovations around DeFi would equally boost its adoption rate.
Consequently, we believe that the LUNA price will hover within a maximum price of $150.00 and a minimum price of $4.00 at the closing price of Q4 2027.
7.0 Coingape Experts Analysis – Competitor Analysis with Similar Projects
Since the LUNA Classic LUNAC failed to maintain its 1:1 USD peg, the LUNA 2.0 is now unpegged from the UST stablecoin and now marketed as a stand-alone blockchain for building DApps.
However, we’ll like to introduce you to a more reliable stablecoin USDC launched in September 2018 by Circle, which has maintained its peg 1:1 with the US Dollar since its launch. Next, we have Avalanche, a second competitor of LUNA 2.0 as a platform for building decentralized applications.
According to the Center consortium, which is behind USDC, they claim that every USD Coin is issued by a regulated financial institution and backed by $1 held in reserve as cash and short-term US Treasury bonds.
Avalanche has had a head start as a scalable platform for launching DApps. LUNA 2.0 would have to prove itself as a new competitor in the space.
Below, we present our predicted maximum and minimum price levels for the LUNA token from 2022 to 2027.
| Years | Max high | min low |
| 2022 projection | $12.50 | $0.1514 |
| 2023 projection | $25.00 | $2.00 |
| 2027 projection | $150.00 | $4.00 |
8.0 Market Predictions for the Token
We believe you’ll want to know the opinion of other top crypto analytics firms and their future price predictions for the LUNA token from 2022 up to 2027.
Well, we’ve got you covered on that. Read on as we reveal the minimum and maximum price levels, targets, and possible percentage rise of the LUNA token.
Wallet Investor Predictions
Following their in-house technical analysis, WalletInvestor (WI) predicts the future values of a wide range of selected digital assets like LUNA, which implies optimism toward the future of the Terra network.
WI predicts that a hundred US dollar investment in LUNA at $0.000182 will result in a revenue up to +198250998.9% following 5 years holding time, bringing your investment to somewhere around $198252098.90 in 2027.
DigitalCoinPrice Prediction
The well-known crypto analytics firm DigitalCoinPrice (DCP), using their proprietary data analysis tools to predict that the LUNA price is expected to cross the $0.000239 level and by the end of 2022, it is expected to reach a maximum price of $0.000250 and a minimum price of $0.00024.
As per their 2023 price forecast, the DCP anticipates a price cross of the $0.000267 price level to a minimum price of $0.000241 and a later maximum price of $0.000276.
Lastly, the analytics firm puts expects the LUNA price to cross the $0.000375, and by the end of 2027, it is anticipated to have set a minimum price of $0.000347 and a maximum price of $0.000385.
CoinArbitrageBot Experts Prediction
Following Terra’s (LUNA) historical price data, the guys at CoinArbitrageBot predict that the LUNA price could strike the $0.001804 mark by the end of the year (2022).
The crypto analytics platform had its three-year prediction of the LUNA token at $0.010561, meanwhile, their calculations set the LUNA price at 0.002919 by the end of 2023 and $0.004723 in 2024.
Longforecast Prediction
The LongForecast crypto prediction and market analytics firm set the LUNA prediction for 2022, 2023, and 2024 as follows.
LUNAUSDT predictions for December 2022.
The firm predicts the maximum price of the LUNA token to be $0.00009590 and a minimum price of $0.00007727. The average price of LUNA in December 2022 is predicted to be $0.00008502.
LUNAUSDT predictions for May 2023.
LongForecast predicts a maximum price of $0.00016239 for the LUNA token and a minimum price of $0.00014115 in 2023. Furthermore, the firm predicts the average price for May 2023 to be at the $0.00015173 price level.
At the end of May 2023, LongForecast estimates the Terra price to be $0.0001517.
LUNAUSDT predictions for June 2024.
The LongForecast predicts a maximum price of $0.00034877 and a minimum price of $0.00028099, with the average price for June 2024 at $0.00030918.
They concluded with a 16.0% hike in the LUNA price at the end of June 2024, bringing the price to $0.00030918, a rather conservative and risk-averse outlook for the LUNA token.
9.0 FAQs about LUNA
Q: Will Terra LUNA 2.0 crash?
According to our analysis and the analysis of other top crypto firms, we believe that the worst for the Terra ecosystem is behind us and the new LUNA 2.0 is here to stay.
Q: Which Exchanges Support LUNA?
You can buy the LUNA coin on the KUCOIN exchange or the Gate.io exchange.
Q: Is LUNA 2.0 a profitable coin to invest in?
Yes LUNA 2.0 is a profitable crypto to invest in for the future. However, we’ll recommend that you only invest what you’re willing to lose. The token is still trading at a price discount and a little investment can be profitable in the long term.
Q: Is LUNA 2.0 good for short-term day trading?
Yes LUNA 2.0 is a great token for short-term day trading. However, day traders should be aware of huge market swings following the recent hard fork that left the old chain as LUNA Classic LUNAC.
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