In the aftermath of Terra’s (LUNA) crash in 2022, which led to its rebranding as Terra Classic (LUNC), the cryptocurrency continues to pique the interest of numerous investors and traders.
With the crypto market at a critical juncture and investors halfway through the year, a diverse range of experts has been consulted to provide valuable insights on LUNC’s end-of-year price target. These insights take into account both fundamental factors and the developments within the network.
Gustaf Kornias, owner of The Crypto Breakdown
Gustaf Kornias, the owner of The Crypto Breakdown, observes that the Total Value Locked (TVL) on Terra Classic has been steadily declining since the collapse of Terra in May 2022. Currently, the TVL stands at an all-time low of $2.7 million, which is significantly lower than previous levels. This decline indicates a decrease in user adoption and trust in the blockchain itself.
“When it comes to the growth of its developer ecosystem, most high-profile projects having abandoned Terra Classic. These projects have either built their own application-specific blockchains in the Cosmos ecosystem or simply migrated to other Cosmos blockchains such as SEI, Osmosis and Injective.”
“In other words, having capital and developers abandoning your blockchain is more or less a death sentence, and we see little reason why either would return. In short, we think it’s highly unlikely that Terra Classic will ever find the type of momentum that it once had as there are too many superior alternatives for developers to choose from.”
However, Kornias does acknowledge one potential factor that could contribute to a future price increase for Terra Classic—the power of memetic influence. He notes, ‘similar to meme coins like DOGE, Shiba Inu and others, Terra Classic and the LUNC token has now more or less become a meme.’
Nevertheless, he notes even here, Terra Classic and the LUNC token are competing with the continuous launch of new meme coins that temporarily capture the public attention.
Craig Leontowicz from HowToBuyBitcoin101.com
Taking a bearish stance, Craig Leontowicz expresses skepticism regarding Terra Classic’s future.
Leontowicz predicts a further decline to around $0.00004259 by the end of 2023—a decrease of approximately 50%.
“The current price of Terra Classic, at the time of this writing, is $0.00008519. That’s four zeros in the decimal point number. Who is trading this? My price prediction for the end of 2023 for this esteemed digital asset is $0.00004259. Or down about 50%. The only pumps in Terra will be to the downside.”
Leo Smigel, founder of Analyzing Alpha
In contrast, Leo Smigel, founder of Analyzing Alpha, offers a more optimistic perspective on Terra Classic’s prospects. Smigel highlights the community’s efforts to initiate a comeback by focusing on one key revival strategy.
He notes they propose implementing a burning tax of 1.2% on LUNC transactions, aiming to reduce the token supply from 6.5 trillion to 10 billion and mitigate the effects of over-minting.
“Big players like Binance and KuCoin are on board, further boosting LUNC’s potential. Their participation in the burn initiative reinforces the revival efforts and could inspire more exchanges to join the ranks. The sustained burn initiative combined with this support can pave the way for LUNC’s short-term growth and trading volumes.”
In summary, while Terra Classic faces challenges due to declining user adoption and the exodus of developers, the community’s revival strategies, including the burn tax implementation and support from renowned exchanges, he suggests “LUNC appears to be gearing up for an impressive 2023.”
LUNC price analysis
At present, Terra Classic’s LUNC token is trading at $0.00008532, reflecting a 0.78% increase over the past 24 hours. However, it has experienced a decline of 5.79% over the course of the week.
Terra Classic currently has a support level at $0.00008, indicating a price level at which buying pressure has historically been strong and may potentially prevent further downward movement.
On the other hand, it has a resistance level of $0.00009, which represents a price level where selling pressure has historically been significant and could impede upward price movement. The token’s market capitalization stands at $500 million, ranked 82nd by market worth.
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