The new LUNA token has plummeted since its launch, raising questions about its potential recovery. This article explores the factors behind its decline, analyzes expert predictions, and evaluates whether LUNA 2.0 is a viable investment.
Key Takeaways
- LUNA 2.0 launched on 28 May 2022 but lost 74% of its value within days.
- Market crashes and bearish sentiment drove the token to an all-time low of $1.17.
- Experts remain divided: Some predict long-term growth, while others foresee further declines.
Terra's Attempt to Rebuild with LUNA 2.0
The Terra ecosystem collapsed in May 2022 after its algorithmic stablecoin UST lost its peg, triggering a cascade of hyperinflation for the original LUNA token. In response, Terraform Labs launched LUNA 2.0 as a hard fork, disconnecting it from UST and rebranding the old chain as Terra Classic (LUNC).
Key Changes:
- No Stablecoins: The new chain excludes UST and other Terra stablecoins.
- Supply Cap: Initial maximum supply set at ~1 billion LUNA, with staking rewards at ~7% annually.
👉 Explore crypto recovery strategies
LUNA 2.0 Price History
| Date | Price ($) | Event |
|------------|-----------|--------------------------------|
| 28 May 2022 | 18.98 | Launch day opening price |
| 18 Jun 2022 | 1.66 | Post-Celsius market crash |
| 22 Nov 2022| 1.44 | FTX collapse aftermath |
| 20 Dec 2022| 1.30 | Partial recovery |
Current Status (as of December 2022):
- Circulating Supply: 127.4M LUNA
- Market Cap: $164M (Ranked #128)
Expert Opinions
Skeptical Views:
- Saxo Bank: "Terra has caused enough harm; the project should have been abandoned."
- Arcane Research: Early LUNA holders profited massively, creating "exit liquidity" at others’ expense.
Optimistic Outlooks:
- Wallet Investor: Predicts LUNA could reach $160.23 in five years.
- Gov Capital: Foresees a potential rally to $348.89 by 2027.
LUNA 2.0 Price Predictions
Short-Term (2023):
- Coin Codex: Drops to $1.18 by December 2022**, slight recovery to **$1.21 in January 2023.
- CaptainAltCoin: Fall to $0.62 by March 2023**, with a bleak **$0 forecast by 2027.
Long-Term (2025–2030):
- Gov Capital: $56.08 (1 year) → $348.89 (5 years).
- Wallet Investor: $34.64 (2023) → $160.23 (2027).
Investment Considerations
- Volatility: LUNA remains highly speculative; past crashes highlight risks.
- Ecosystem Viability: Success hinges on rebuilding trust and utility.
- Diversification: Never allocate more than you can afford to lose.
👉 Learn about risk management in crypto
FAQs
Is LUNA 2.0 a good investment?
While some analysts predict growth, the token’s history of volatility and skepticism from experts like Saxo Bank suggest caution.
What caused LUNA 2.0’s price drop?
UST’s collapse, market-wide crashes (e.g., FTX), and loss of investor confidence.
Can LUNA 2.0 recover?
Recovery depends on adoption, market conditions, and Terraform Labs’ ability to deliver utility.
Final Note: Always conduct independent research and consult financial advisors before investing. Cryptocurrencies are high-risk assets.