Skip to content

LUNC would trade at this price if Terra Classic hits its all-time high market cap

LUNC would trade at this price if Terra Classic hits its all-time high market cap

Cryptocurrency traders and investors often overlook the tokenomics and supply inflation of cryptocurrencies. Understanding how they affect the value of a crypto asset offers a valuable advantage when investing.

With that in mind, Finbold looked at Terra Classic (LUNC) tokenomics from a different perspective. Public market data from leading indexes can demonstrate the effects of an increased supply inflation. We calculated the exact price LUNC would trade if it ever hits the all-time high market cap.

Interestingly, any token needs more demand to keep its same value, facing an inflationary supply. These two factors influence whether a cryptocurrency’s price rises or falls. Each one of them, including Terra Classic, has its unique ‘tokenomics’ structure.

Notably, LUNC had an all-time high market cap of $40.99 billion on April 4, 2022, according to CoinMarketCap’s index. Meanwhile, the token traded for as high as $119.18 the next day. An inverse calculation suggests a circulating supply of around 343.933 million LUNC at that time.

LUNC all-time high market cap and price.
LUNC all-time high market cap and price. Source: CoinMarketCap

Terra Classic supply inflation and its economic effects

Let’s explore LUNC’s supply inflation and its economic implications. As of this writing, Terra Classic has a circulating supply of 5.80 trillion LUNC. This results in a supply inflation superior to 5.80 trillion tokens (more than 1,000,000%).

Terra Classic supply.
Terra Classic supply. Source: CoinMarketCap

The price projection also shows the massive economic effects of this huge inflation. In case the Terra Classic reaches its highest speculative demand of $40.99 billion market cap, LUNC would trade at a proportionally lower price than the corresponding all-time high.

Considering the circulating supply on December 1, Terra Classic would be priced at $0.00706 per token at its highest capitalization. Interestingly, a loss of $119.18 (99.999%) from the previous price in 2022.

However, this still indicates a potential 4,800% increase from the current price of $0.0001442.

It is important to understand that the forecast requires Terra Classic’s same demand as 2022. In this context, there are no guarantees that this demand will ever be seen again. On the other hand, it is also possible that a higher demand surges in the following years.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in 70+ cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10.

  • Copy top-performing traders in real time, automatically.

  • Regulated by financial authorities including FCA and FINRA.

2.8 Million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

Read Next:

Weekly Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related posts