James Atkins
Editor
Editor
Will the price of Terra (LUNA) ever reclaim its former glory?
This week’s crypto news cycle has been mostly dominated by Terra (LUNA). From being one of the top 10 most valuable cryptocurrencies to ranking below 200. The coin changes in a matter of days. So, will the stablecoin platform ever recover? Here are some high points:
Data source: Tradingview
Terra (LUNA) was one of the most successful altcoins of 2017. The project raised $32 million in its ICO and quickly rose to a valuation of over $1 billion.
The Terra team chose to peg their stablecoin to a basket of fiat currencies. Rather than just one, which helps to create stability. However, over the past year, the Terra stablecoin has been anything but stable.
The Terra team claims that the recent volatility is due to market conditions and not because of any problems with the underlying technology.
They also say that they are working on solutions to address the issue. However, many investors have lost faith in the project and have sold their tokens.
In terms of crypto, Terra (Luna) was always regarded as the icing on the cake.
It was among the top 10 most valuable assets for a long time, and it routinely traded at more than $100. However, in 2022, after periods of decline, the coin has settled at about $40,000.
This year has been catastrophic for Terra. The coin starts the year at $13 and falls to an all-time low of $0.65 in March. It has since recovered slightly and is currently trading at $2.40. This means that Terra has lost over 80% of its value this year.
Following the petro’s introduction in 2018, it quickly became a darling of investors. Who thought that its creation would benefit Venezuela.
But, after the dollar-pegged UST stablecoin lost its peg, it completely evaporated. LUNA simply plummeted and is now available for pennies. While some modest recovery has been reported over the last few days.
Furthermore, a lot of the things that must happen for LUNA to have a chance have not yet occurred.
The UST peg has been broken, and the Terra community is running out of methods to defend the stablecoin. If you’re hoping that LUNA would ever recover to $10 or even $120 again, it’ll be a miracle.
In short, the Terra community needs to come up with a new game plan to increase the price of LUNA; and restore investor confidence. Until then, it is unlikely that the price of LUNA will ever reclaim its former glory.
You may trade LUNA as of right now, but don’t keep it. As previously said, the currency is moving up and down rapidly because of its high volatility. So, it’s unwise to enter a position now and try to catch the bottom.
It’s better to keep an eye on the project and see how the Terra team will solve its issues. If they manage to do so, LUNA might have a chance to reclaim its former glory. Right now, however, it’s too early to say anything for sure.
This permits short-term speculators to make a fortune. However, LUNA is presently too risky for the long run. So, unless you’re willing to take a big risk, it’s better to stay away from LUNA for now.
I have been writing copy for blockchain-related projects since 2017. I understand the importance of being able to communicate clearly and effectively with both technical and non-technical audiences. By leveraging my understanding of the crypto industry trends, I can help increase adoption in this rapidly evolving landscape.
