The month of May was dominated by the announcement of the LUNA crash. This came after its dollar-pegged stablecoin UST fell almost 90% against the dollar. In an effort to revive Terra and stop the bloodshed, the Terra community has announced a name change. But Terra 2.0 did not have the expected success. Here are the points:
- Terra classic lost nearly 80% of its value shortly after it announced its airdrop
- The coin managed to recover slightly but still remains in the red.
- More volatility is expected on LUNC over the coming weeks.
Terra 2.0 – Can it seduce investors?
The 80% drop shortly after launch is of course a bad sign for Terra 2.0. But it’s not really the end of the world. In fact, due to high market volatility and slowing investor confidence, Terra 2.0 was largely expected to face challenges. The good news is that despite the decline, LUNC has shown signs of recovery.
The coin appears to be consolidating and settling in between $4 and $6. Also, LUNC has managed to keep the market cap way above the $1 billion mark. We expect the price to continue stabilizing in the days ahead before it establishes a trend.
After that, LUNA will start rising and falling based on price movements in the rest of the market. Eventually, the coin could touch $10 in a few weeks as investors start buying into the idea.
LUNC’s long term prospects
Rebranding Terra is a big first step. It means that the people behind the project are committed in the long term. We do not think Terra 2.0 will be as big as the original Terra.
After all, this was a project that once had a market capitalization of over $20 billion. But Terra 2.0 is likely to come in at $5 billion in the near term.
