We can’t believe it even as we write it, but against all odds, Terra Classic has pushed through the bearish markets and has become one of the hottest cryptos in the crypto community.
Following a completely different trend from the other cryptos in the markets, even the likes of Ethereum and Bitcoin, who both have shown a bearish trendline over the past week, the Terra Classic seems to have established a hefty uptrend in the past seven days. It has gone from $0.00013 to $0.00029 and is currently testing its $0.00030 support.
However, the crypto crowd is still wondering whether this outlandish uptrend is a fluke or if there is long-term potential for this cryptocurrency. Let us answer this question in our Terra Classic price prediction.
What is Terra Classic (LUNC)?
Terra Classic is the crypto that signaled winter is coming in the crypto ecosystem. Its cataclysmic failure led to bitcoin tumbling down to below $20k levels and Ethereum to find support at an abysmal $1k.
At the time, Terra Classic was worth $80k, and when it plummeted to nothing, it wiped out $40 billion worth of investments from the market. Many traders lost their homes and livelihoods as a result, as they believed Terra Classic to be a complete coin without any fallacy.
But it was not only the little investors that lost their money; youtube stars like KSI lost $3 million. And when the speculations began about why it happened, only one cause came to the surface – the system wasn’t prepared for the investors to withdraw their crypto assets.
You see, things were fine when people weren’t withdrawing their LUNC and cashing them. But when it first started, the system underlying the Terra Classic went into a death spiral.
It tried to sell the tokens to stay liquid, but that prompted the investors to start dumping more of their own. This vicious death spiral gradually made Terra Classic hyperinflationary, and the number of tokens turned into trillions.
At the time of writing, there are 6.1 trillion tokens in circulation, with many investors buying this crypto in droves.
While no solid reason yet exists for this mass buy, there is huge momentum behind LUNC, and the low entry price of this crypto is attracting many investors – even those who have just entered the ecosystem.
Community-Power: Major Force Behind the Luna Classic Pump?
After the LUNA came crashing down in May, Do Kwon gave the reins of this fledgling blockchain to the community, as if saying, “let us try you handle it”. However, he also offered them the burn address on the community’s behest that started the now famous #lunaburn campaign.
And the community never tired out, despite what the market sets. Every day, millions of tokens were being sent to the burn address to kick them out of circulation, and every day, more users came to accelerate the burning process.
It all came to a head on August 26 when LUNC went through its first pump due to the introduction of LUNC V2. That update made it possible to stake LUNC and earn up to a 42% Annual Percentage Yield.
Another update that pushed this crypto even further was the announcement and eventual launch of LUNA1.2. It is a new burn mechanism that burns 1.2% of LUNC for every transaction, and Binance honored that burn.
Despite these updates, it has not been easy to find the right reason for this massive buy-in. Perhaps the misinformed opinion that this token will reach $1 is the reason. There are many overbullish on crypto who are betting on it reaching those levels despite evidence to the contrary – it will take an exponential parabolic uptrend to see that much growth, and we aren’t talking only about 5x or 10x or even 20x here; we are talking even more than that.
Why Be Bullish on LUNA?
LUNC’s performance has made it clear that market fundamentals be damned; if the crypto crowd likes a token, even if it is flawed and has no strong fundamentals, they will rally behind it.
It won’t be the first time since many cryptocurrencies have banked upon the community’s over-excitement and the ability to remove logic from the investment decisions to grow parabolically. But the retrace levels that those tokens reached have also been a sight to behold.
LUNC has no real use case except for the recently introduced staking, but that has done nothing to deter investors from buying it in bulk. The trading volume of this cryptocurrency has gone up to 30% in the last 24 hours alone.
But there are some small reasons to be bullish about this crypto.
It is a renowned name within a crypto ecosystem
In its heyday, LUNC was one of the most trusted and renowned names in the crypto market. And many people still believe in it. That belief alone has pushed many to burn their tokens to control the circulating supply.
It is a deflationary Crypto
After introducing the 1.2% burn mechanism, LUNC has become deflationary crypto. Its supply will likely reduce even more in the future as the buying pressure is continually building up.
Hope that this crypto will reach $1
There are those that firmly believe that the value of the token will reach $1. That promise of big gains is driving the most massive buy-ins.
Whales are not selling their tokens
Over 7% of total LUNC is with the whales, and they are not selling their assets. This plug-on dump has led the community to believe that even the whales are hoping for this crypto to succeed. Also, these whales are pushing their cryptos to the burn addresses.
Staking is a Plus
More than 400 billion LUNC tokens have been staked, and the high APY is enough for most to go bullish about Terra Classic.
Why by Bearish about Terra Classic?
Let us discover the fairy tale that is probably happening on the surface and be real for a minute. There are many bearish cases of LUNC, especially if you’re looking for mid to long-term growth.
The supply is way too high
The circulating supply of LUNC is 6.15 trillion – which is way too large to burn. And while the burning speed has increased, it is not enough to make this crypto reach $1 anytime soon.
People have unrealistic expectations
From “LUNC is about to hit the stratosphere” to “Won’t stop until LUNC reaches $1 in 2022”, multiple pseudo-campaigns on Twitter are running on sheer hope and blind optimism. To reach $1, LUNC needs $6 trillion. The entire crypto market is worth $1 trillion. So, unless all marketers decide to leave their favored crypto assets and put it all on LUNC and get another $5 trillion, we’re not going to see LUNC reach $1 at least for years.
The Retrace May come at Any day
LUNC’s rise is the same story of Dogecoin, the crypto memecoin that punched through the upper charts and soared, all because the community wanted it. But that community couldn’t hold on to it for long, as the retrace that happened after was way profound. Dogecoin is hardly getting close to $0.20 these days. We can expect the same to go for LUNC.
Terra 2.0 is better In Every Conceivable Way
Now comes the biggest competition that LUNA classic would face, the Terra 2.0. This hard fork of the original has better tokenomics, a better use case, and an overall better model. It has maximum supply is only $1 billion, which already puts it leagues ahead of LUNC. This new LUNA is trading at $1.86 and has a circulating supply of 127.5 million.
Many Blame Terra Collapse for Rising Demand for Regulations
After the fall of Terra, Do Kwon wasn’t the only one that was called to Court; the entire crypto market was put under the legal microscope. While we at Insidebitcoins welcome regulation in the crypto space, many don’t see it that way. They’re afraid that the government’s intrusion will give way for more centralized bodies to take control of the blockchain.
Terra Classic Prediction and Alternative – Tamadoge
LUNC might be great for the short-term, but for the long term, it does not hold up. It has no use-case to show for it except for staking, and the community doesn’t seem to put any more utilities for this crypto.
That said, if you want to just buy some LUNA Classic and set it aside – you can go for it. But don’t buy into the massive buy-ins. Go small, and if the token actually performs in a way that surprises even us, we would be the first to admit our mistake.
However, if you want a bigger and better alternative to Terra Classic, choose Tamadoge. This cryptocurrency, like Terra Classic, is also deflationary. But it is one of the best new cryptocurrencies in the market this year, has a far better use case, and is ready to give you an early-mover advantage.
Tamadoge’s beta phase of presale ended quickly and is now in the 7th phase of its presale, which we’re sure will also be complete in record time. At the time of writing, the presale has raised upwards of $11.5 million.
Tamadoge is a P2E ecosystem featuring Tamadoge Pets, NFTs that you can own and use for battle in an Augmented Reality (AR) environment to earn rewards. This token has already secured its long-term future, and the pace at which the tokens are going out means that the larger crypto community is already behind it.
You can get the full information about this crypto on its official website.
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