Terra (LUNA) Price Prediction 2025-2030: The future of LUNA looks…
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.
Terraform Labs created the Terra USD stablecoin and the Luna coin, both of which were released in 2019. TerraUSD was previously pegged to the Luna coin so that the former’s price was stabilized.
Here’s AMBCrypto’s Price Prediction for LUNA for 2023-24
The journey of this pair of coins, UST and LUNC, has many ups and downs. Do Kwon and Daniel Shin, a pair of South Korean techpreneurs, founded Terraform Labs in Seoul in 2018. In 2019, they launched UST, a native stablecoin tied to LUNC.
Stablecoins, such as UST, was created to protect investors from the extreme price volatility of popular cryptocurrencies such as Bitcoin; a stablecoin has a fixed price.
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 was crucial in instigating the cryptocurrency crisis thereafter.
LUNA was one of the market’s top performers once, with the altcoin once among the top 10 cryptocurrencies by market value towards the end of 2021.
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