Will Luna Classic Reach $1 in 2025 or in The Future?

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Eliman Dambell

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Eliman Dambell

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Eliman Dambell was a news writer and editor at Bitcoin.com, FXStreet and Investing.com. He commentates on various markets, including Crypto, Stocks and FX.

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December 6, 2024 01:34 EST

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At its peak, Luna Classic was expected to be one of the biggest cryptocurrencies in the ecosystem, with its price at nearly $120. The price now sits at $0.000063. However, many “lunatics” (the name given to believers of the project) still envisage a future rally.

In this guide, we analyze all possibilities to determine whether Luna Classic will reach $1 in the near future or whether it is, in fact, dead. We will use the project’s fundamentals and a wider look at the current climate of the crypto market.

Is It Possible for Luna Classic (LUNC) to Hit $1?

Before we look at whether Luna Classic can reach $1, let’s get a brief background on the token. Luna Classic (sometimes called Terra Classic) is the name of the cryptocurrency that was replaced by Luna 2.0 after the crash of Terra Luna and a hard fork of the Terra blockchain.

At its core this project was powered by the Terra blockchain, which was used to support its native coin, and its algorithmic stablecoin, UST. While Terra Luna crashed, many still trade and use Luna Classic.

In a nutshell, LUNC was born when Terra (LUNA) crashed after the company’s former CEO Do Kwon was embroiled in a fraud scandal. The crash of Terra came in 2022.

At the time, it was one of the most significant events in the crypto space. This collapse impacted confidence in the industry as a whole, and was one of the catalysts of the most recent crypto winter.

To hit $1, several monumental events need to occur within the project. Firstly, there will need to be a shift in how the market views Luna Classic, which will likely be the most difficult thing to achieve.

Secondly, the continued reduction in the token’s supply could boost the coin’s rarity, with a potential for this to increase demand.

Finally, a sense of FOMO (Fear of Missing Out) will need to be present as investors may only begin to believe in LUNC if it looks like a price recovery could be on the cards.

A more realistic expectation is for Terra Luna Classic to reach 1 cent, and then based on this achievement start to wish for a more meteoric rise to $1.00. If you don’t believe LUNC will recover, here is a list of some other cryptos that might hit $1 soon.

Can Luna Classic Hit $1 in 2030?

So, will Luna Classic reach $1 in 2030? As it stands, we predict LUNC will climb to a price of $0.000098 by 2030.

It is highly unlikely that in six years time, both the market and the mainstream perception of LUNC would have shifted to the point where it would be trading at or above $1.00.

As briefly mentioned above, a more realistic question will be will Luna Classic reach 1 cent?

For this target, here are some things that could bring you hope. Firstly, interest rates have started to fall, with the Federal Reserve slashing them by half a point in September 2024. According to Fed policymakers, rates will gradually come down over the next 12 to 18 months.

This will generally boost demand for riskier crypto assets that have an upside, with LUNC potentially one such token.

Additionally, we alluded to this above, LUNC currently has a circulating supply of 5,718,224,954,643 tokens and a market cap of $342.90M.

A significant burn in supply may lower the short-term valuation of the token, but in the long-term could help create the type of FOMO needed to attract a new wave of crypto degens.

Changes to LUNC’s burn tax distribution have been proposed, allocating a portion to the Oracle Pool, which supports price feeds for DeFi applications within the network. Although controversial, this shift is seen as a long-term benefit to staking and ecosystem health.

Can Luna Classic Hit $1 in 2050?

By 2050, many of you may want to know will Luna Classic reach $10. Based on the current climate, even a price of $1.00 could still be out of the cards.

However, as we’ve seen in the past, the market could move quickly, with new traders possibly viewing LUNC differently to the current batch of investors. As such, it is hard to fully rule out a twist of fate, that could bring new energy into the project.

We envisage that in 25 years’ time, the crypto market will likely be intertwined with mainstream society. This adoption could help revive projects like Luna Classic, which at one stage had what looked like a fundamentally sound project.

As such, we see LUNC potentially rising significantly; especially considering that LUNC continues to focus on community-driven initiatives aimed at restoring the ecosystem, with new roadmaps highlighting security upgrades, potential DeFi use cases, and collaborative efforts to re-peg USTC to $1​.

Here is what we predict over the next ten years:

What Could Make the Luna Classic Price Explode?

Recently, there has been speculation around a potential bull rally for LUNC, with some analysts forecasting gains of up to 545% based on certain technical indicators.

While such gains are unlikely, the possibility of speculative surges remains, as LUNC has historically experienced sudden price movements driven by strong interest from speculators.

So what exactly would it take for Luna Classic to see a rally in its price? Let’s take a look at the main factors.

Revival of the Terra Ecosystem

The driving force behind LUNA was the Terra ecosystem, which was a launch pad for algorithmic stablecoins. The reason why the initial price collapse occurred was a loss in confidence in this ecosystem, which was unable to sustain its peg with the USD.

It was then discovered that Do Kwon had misled investors into believing that blockchain was stable, and used to power multiple projects, like a Korean payment app.

Should the Terra Classic ecosystem rebuild this damaged reputation, and potentially separate the project from the sins of its founder, this could be a major step in regaining its lost value. This year, several efforts were made to revive the ecosystem.

For instance, LUNC developers completed the Oracle Split Logic, which redirects community pool rewards to the Oracle Pool. This move aims to sustain the network’s staking rewards and enhance the overall stability of the ecosystem.

Moreover, a key LUNC governance proposal to enable the ICA Controller parameter passed with overwhelming community support. This update improves the network’s infrastructure, paving the way for more efficient upgrades.

In August 2024, the Terra ecosystem saw a key improvement with the implementation of the Tax2Gas upgrade, which automated the tax calculation process by embedding it directly into gas fees. This change has streamlined transaction efficiency within the LUNC network, reducing the likelihood of errors and simplifying the tax process for users and validators.

The upgrade was widely supported by the Terra community and even received technical backing from Binance, signaling a renewed commitment among ecosystem players to restore confidence in Terra Classic.

In addition to Tax2Gas, the Terra ecosystem may soon see the introduction of a “Reverse Charge” tax mechanism proposed by OrbitLabs. This system would shift the tax burden from senders to recipients, simplifying transactions and potentially improving compatibility with dApps.

If approved, this proposal could further streamline user experience within the LUNC ecosystem, boosting its appeal to a broader crypto audience.

Huge Token Burn Events

As mentioned earlier, one of the main ways we believe Luna Classic reach $1 again will be through a significant burning of its token supply. Currently, there are over 5.44 trillion tokens in circulation.

By reducing this supply through large-scale token burns there is a good chance that this will rapidly increase the token’s scarcity. Deflationary tokenomics could potentially lead to a price explosion.

As part of the bankruptcy court settlement, Terraform Labs was ordered to reopen the Terra Classic Shuttle Bridge and execute a burn of 150 million LUNA tokens. This action aims to facilitate asset redemption for former Shuttle Bridge users, providing a pathway to reclaim wrapped assets.

Additionally, by reducing the circulating supply of LUNA through this significant burn, Terraform Labs hopes to increase token scarcity — a key factor that could support any potential price increase for LUNC in the long term.

Binance has been spearheading the LUNC token burn efforts. Recently, it burned over 1 billion LUNC, pushing the total community burn to almost 137 billion tokens. This demonstrates the community’s sustained commitment to decreasing the supply, a key factor in LUNC’s speculative price potential.

Regaining Investor Trust

This will be one of the more difficult aspects to pull off, as the general perception of Terra has been badly damaged by the mainstream media. There is a passionate Terra Classic community but it is a very small subset of the wider crypto community.

However, more positive news cycles, like new project launches, partnerships, and new feature developments could help restore faith in LUNC and boost LUNC’s price.

In addition to this, there will also need be to full transparency on what occurred in the past, and communications on potential safeguards to prevent such an event from reoccurring in the future.

As part of Terraform Labs’ ongoing bankruptcy proceedings, victims of the Terra collapse had to file claims for losses suffered during the ecosystem’s downfall until August 2024.

This claims process offers affected investors a chance to participate in the bankruptcy resolution and have their losses recognized. However, it also highlights the legal and financial complexities surrounding LUNC.

These ongoing legal challenges make LUNC’s future uncertain despite efforts to rebuild the community and regaining investor trust.

The Road to $1: What Obstacles Does Luna Classic Face?

So, we now have a better idea of what could help resurrect Luna’s legacy, but what exactly are the obstacles that it will face on its way to racing $1? The token supply is one of the major factors, in addition to its damaged reputation, let’s lay these out in more detail.

Huge Supply: 5.44 Trillion Circulating Tokens

With a supply of over 5.44 trillion tokens, creating a sense of FOMO will be difficult to achieve for Luna Classic. Rising to $1 with this amount of supply will make it even more valuable than BTC, which is impossible to imagine.

As a result, burning this supply, to reduce it to a more realistic level will be required in the long term.

Failed Terra Ecosystem

Another major obstacle is the current state of the Terra ecosystem, which many consider to be a failure. Being a stablecoin, which was unable to maintain its stability created a whirlwind of negative publicity, which the company may never recover from.

As such, there would need to be a major overhaul of the project from a technical point of view, to help remedy this — which the LUNC team has been working on in 2024.

Low Investor Confidence

Following the collapse of the Terra ecosystem, and subsequent fraud and imprisonment by its founder Do Kwon, investors fled the cryptocurrency.

Besides a small set of cult believers in the Luna Classic community, the general sentiment around investors is extremely bearish on Luna. Should this level of low confidence persist, it is unlikely that LUNC will ever reach $1.

Will Luna Classic Reach 1 Cent Instead?

Okay, as this guide has shown, it is highly unlikely that LUNC will reach $1, however, does it have a better chance of hitting 1 cent instead? To achieve this, LUNC would still require substantial token burns, the revival of the Terra ecosystem, and a surge in demand.

Our Terra Classic price prediction below is where we believe the price of LUNC will reach in the coming years.

Overall, we consider it highly unlikely that Luna Classic will reach a price of even $0.01.

Conclusion

Overall, it is apparent that Luna Classic faces an uphill struggle as it hopes to regain its former glory. As we’ve outlined throughout this analysis, there are significant obstacles in place such as its oversupply, the reputation of the Terra ecosystem, and market confidence.

Although it is theoretically possible for LUNC to reach $1, a more realistic target at this stage might be the 1 cent mark. Both would require a grand upscaling and new product developments in the Terra ecosystem.

FAQs

Is it possible for Luna Classic to hit $1?

The current market conditions and the vast supply of LUNC make this highly unlikely, especially without significant changes to the Terra ecosystem.

Could Luna Classic hit 1 cent?

Reaching 1 cent is a more realistic, but still a highly ambitious target. Achieving this would require a substantial reduction in the supply of LUNC and major changes in public perception.

What’s the highest Luna Classic can realistically go?

Given the current challenges, we believe LUNC can hit $0.00012 by 2030.

Is Luna Classic a good investment?

Frankly, this will be an extremely high-risk investment, with little to no chance of return. However, anything is possible in theory.

Will Luna Classic ever recover?

Recovery is possible but would require a combination of factors, However, this remains unlikely to its current reputation.

References

• What Terra’s crash means for crypto? (TIME)
• Fed Powell signals upcoming rate cut (New York Times)
• Terra Labs agree to settle SEC lawsuit (Reuters)
• Fed slashes interest rates by a half point, an aggressive start to its first easing campaign in four years (CNBC)
• Fed officials signal more rate cuts, Bostic open to a skip (Reuters)
• Terra Luna Classic (LUNC) Announces Oracle Split Logic Update, Futures Surge 20% (Crypto News Flash)
• Reviving Terra Luna Classic: KYC, Collaboration, and Road to $1 USTC Repeg (StreetInsider.com)
• Terra Luna Classic (LUNC) announces its new roadmap for the reactivation of its ecosystem (Bit2Me)
• Terra Luna Classic Community Approves Crucial Proposal For Future Upgrades (CoinGape)
• Court Sets Date for Victims of Terra Collapse to File Crypto Loss Claims (The Crypto Basic)
• Court Orders Terraform Labs to Reopen Terra Classic Shuttle Bridge and Burn 150M LUNA (The Crypto Basic)
• Binance Burns 1 Billion LUNC Tokens (CoinGape)
• Terra Classic Tax2Gas Upgrade Approved (The Crypto Basic)
• OrbitLabs Proposes Testing for New Terra Classic’s Tax Mechanism (CoinGape)
• Strong upward movement coming for the crypto LUNC (The Cryptonomist)