Terra (LUNA) Price Prediction 2025-2030: LUNA’s price will have to wait unless…
Disclaimer: The datasets shared in the following article have been compiled from a set of online resources and do not reflect AMBCrypto’s own research on the subject.
It has been more than nine months since the crypto-project Terra Luna saw a catastrophic collapse in May last year. For its part, the price of LUNA has been on a downtrend for a few weeks now, with the altcoin trading at $1.26 at press time. In fact, its market capitalization had fallen to as low as $293 million on the charts.
As the SEC charged Terra founder Do Kwon with fraud over the $40 billion crypto crash, it has adversely affected the market. As there is hardly any positive news regarding its price movement, we cannot deny the fact that LUNA will never be considered a ‘safe’ cryptocurrency. Therefore, it may not be able to return to its former heights again.
Read Price Prediction for LUNA 2023-24
Stablecoins, such as UST, were created to protect investors from the extreme price volatility of popular cryptocurrencies, such as Bitcoin (BTC).
As fiat currency is pegged to reserves such as gold, a stablecoin is pegged to either a fiat currency (e.g. USD) or a supporting cryptocurrency. In this case, TerraUSD was pegged to Luna. But herein lies the conflict. A cryptocurrency isn’t equivalent to gold reserves. As LUNA prices got destabilized, it had an impact on UST prices too, and the entire stablecoin system collapsed in the second quarter of 2022.
The stablecoin project was aimed at complementing the price stability and wide adoption of fiat currencies with the decentralized model of cryptocurrency.
Even those who are only vaguely familiar with the cryptocurrency industry know of the apocalyptic collapse of LUNA and UST in May 2022. This collapse
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