Terra Luna Classic Price Prediction – Is $10 LUNC Possible This Year?
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Several developments have attracted investors back to Terra Luna Classic in the past week. Can LUNC hit the $10 peg this year and restore its former glory?
Recent developments point in this direction.
USTC to Repeg
Terra Luna Classic did not start on such a poor footing. At its height, the token was among the top trending crypto assets, with a $119.1 price peg and billions in market cap. The project’s attraction was found in its algorithmic stablecoin, UST, which facilitated fiat-like transactions in the Terra ecosystem.
However, a series of incidents caused UST to lose its $1 price peg and LUNA to follow suit. Principal founder Do Kwon then deployed a hard fork which caused the original blockchain to be renamed Terra Luna Classic and its algorithmic stablecoin USTC.
Although USTC has struggled to regain its dollar peg, there is a growing sense that there could be a means to execute this. The idea was proposed by a prominent Terra Luna Classic community member, Tobias Andresen.
In a Medium post, Andersen surmised that there could be two ways of forcing USTC to re-peg to the $1 value. The first is called Quantitative Easing (QE), which essentially entails printing more USTC tokens to stop the digital asset’s downward trend. Andresen called this a ‘magic fix’ used by several countries and economies to purchase equities in a highly inflationary environment. While this could be a solution, Andresen said he favored a second option which he called Quantitative Tightening or QT.
Here, the amount of USTC and LUNC in circulation would be drastically reduced to create long-term value. He also said this would be done using what he termed ‘sweat equity’ and ‘partitioned pools’ to recapitalize both tokens. Other austerity measures would include increased interest rates on staking rewards by reducing the ‘lowering weight’ in return for increased ‘lock-up periods.’ This would cause the blockchain network to burn most of its taxes to achieve this colossal goal.
But Andresen says the network would need to introduce new features if it wants a fighting chance. Some of these features include ‘partitioned pools,’ which would allow decentralized applications (dApps) to create their in-house nested capital partitions in the Terra pool and pay a LUNC-based fee to protect against spam requests. As a result, dApps would get their community token with an initial supply of zero.
Ultimately, all the pooled community tokens would be traded solely using the LUNC and USTC pairs.
Terra Luna Classic Eyes Boost with Cosmos Interoperability
The Terra Luna Classic network intends to provide extensible communication frameworks to the Cosmos blockchain through a development module called TR V23.
According to a tweet released in the early days of October, the Terra Luna Classic network would become interoperable with the famous internet of blockchains (IBCs), Cosmos, because of the upgrade.
Only after the TR v23 release containing the CosmWasm upgrade will #TerraClassic become fully interoperable with other Cosmos based blockchains. #TerraRebels continues to build value for the #TerraClassicCommunity, #LUNC and #USTC! https://t.co/WopI4WGqwT— Raider (@Raider7019) October 7, 2022
This will likely boost the price action of both LUNC and its stablecoin counterpart, USTC, if it scales through.
Impact Project Likely a Crypto Gem
Terra’s meteoric rise to blockchain fame and its ascendancy from its launch in 2018 to tens of billions in market cap points to the opportunity to be derived by identifying cryptos with the most potential early on.
One such is Impact Project (IMPT) which is geared towards fighting climate change using blockchain technology. The project provides a streamlined, user-friendly means for users to purchase carbon credits which can then be minted as non-fungible tokens (NFTs). Aside from this, it has an NFT shopping platform that sports eco-friendly products and services from top environmentally-conscious brands.
Given its launch on the Ethereum proof-of-stake (PoS) protocol and its fight against greenhouse emissions, Impact Project is the greenest cryptocurrency in the crypto market. Investors can buy IMPT tokens now on presale.