Will Luna Recover? Ed Kim and Binance Developments driving 'A New Hope'? (2024)

Will Luna Recover? After struggling for nearly 3 months, LUNC has risen by nearly 10% soon after the introduction of a new Ed Kim proposal on LUNC revival. The proposal is now Live for voting.

Luna Classic is in dire straits at the momentum as the community struggles to implement the next steps. The problem becomes more acute because of the current cryptocurrency industry crisis.

.#Binance just released a statement in regards to $LUNC remints.
It was VERY important that #LUNC proposal 11111 passed.
We saved Binance #LUNACLASSIC burns & showed we were good faith actors. pic.twitter.com/yvJRwqy97u
— Classy 👾 (@ClassyCrypto_) December 28, 2022

Breaking: Ed Kim’s Proposal is now Live for voting. The summary is as below

1. Contract several experienced blockchain developers to complete the required updates to upgrade and stabilize the L1 layer. Hire theequivalent of 3 full-time L1 blockchain developers. The proposed team of individuals would be Tobias, Ed, and Till, with invaluable contributions from Notional Labs (Jacob Gadikian’s group)

2. Activities list (In Brief)

Establish process and product backlog for L1 team.
Establish a “community oversight committee” for this L1 team, with trusted third parties. (PFC, DJTrev, StrathCole)
Test, push, and upgrade testnet with version 1.0.5
Test, push, and upgrade mainnet with version 1.0.5
Work closely with infrastructure* and L2 wallet providers/partners* on the Classic chain to ensure compatibility with Cosmos 45.11 and Tendermint v0.34.21.
Test, push, and upgrade testnet with version 2.0.4
Test, push, and upgrade mainnet with version 2.0.4
Secure and deploy Oracle with sha256 to all validators.
Fork TFL Interchain wallet, develop potential solutions to the bech32 problem at the wallet level, and present multiple solutions to TFL.* **
Conclusions of quarter 1. Community assessment of team activities. Governance vote to continue funding team activities.

3. Budgets (In Brief)

Equivalent budget of 3 full-time developers at the yearly rate of $150k USD.
Total spend per month is ~$800. These are indicative of supplemental costs for L1 development.

Distribution of payments will happen monthly – approval from the oversight committee, and approval from Terra Grants Foundation signers of the multi-sig.

You can vote on the Ed Kim Proposal here

Read here for more details

After the Industry numbing shock of the Terra Luna crash in May, Terra Luna’s recovery has been a major story since July. With the fork in late May, there are two Luna Tokens now. The original Terra Luna token is now Luna Classic while a new token called Luna 2.0 was also launched. While it was expected that investors would back the new Terra Luna, the reverse happened. Luna Classic is now 5x larger in Market Cap than Luna 2.0. The question is, is this Terra Luna recovery sustainable and real? Read on.

Why did Luna Crash?

The Terra UST was an algorithmic Stablecoin backed by Terra Luna Token
$2B worth of UST was unstacked from Anchor and sold in the market. This led to a de-pegging of UST from the dollar
As a consequence, many consumers began to convert their UST (worth less than a dollar) with a dollar worth of Luna
This led to billions of dollars worth of Luna being mined.
The cycle of further UST Selling continued leading to the mining of billions of Luna which in turn crashed the price of Luna as well.

Will Luna Classic Recover? Performance to date since Fork

Luna Classic Performance May-September

Will Luna Recover?

This question is particularly intriguing for two reasons. Firstly, Luna Classic was actually on a path of recovery between May and September. However, after the Burn tax was rolled out, the recovery has not only stalled but the crypto is down by more than in the last 3 months. So the big question is if Luna will recover or if it is at a dangerous place now.

Luna Classic’s Price recovery will depend on a few factors:

Macroeconomic environment
Development of Luna Classic Eco-system
Differentiation versus competition

Among the above three factors, the macroeconomic environment is not in control of the Luna Classic Community. So let us focus on the other two

The Luna Classic Ecosystem

Here is the latest list of Luna Classic Ecosystem. Many of them are not active on the Terra Classic blockchain. While a precise number is unavailable, it is unlikely to be in the double figure. On the other hand, the forked Luna 2.0 has a reasonably extensive list though it is doubtful that many are active there either. One of the agendas of the more technically minded community members was to find a way to ensure Luna 2.0 DApps were also present on Terra Classic. However, limited progress has been made as the top agenda item was moving Infrastructure control into the hands of the community. At the moment, there isn’t enough money to complete that transition.
After some failed attempts, most community voices have returned to pushing for more burn. Given the results of the last 3 months, it isn’t very likely to yield results.

Differentiation

Without the ecosystem, there is no standout as far as Luna Classic is concerned. There are numerous tokens with better use cases and a focus on developing the ecosystem. In fact, there is increased pressure on new tokens to enable numerous use cases.

So at the moment, one can say with confidence that, current community activities will NOT spur a recovery in Luna Classic price. Luna Classic could still recover due to market conditions improving but that would be in line with the market and not the outperformance as seen between May and September.

Will Luna Classic Recover? Have we reached the Crypto market bottom?

It is difficult to say if we have reached the Cryptocurrency market bottom

No visibility on when the Federal Reserve will stop rising rates
Cryptocurrency industry scandals are likely to recur given the lack of regulation. This period in particular.

Our view is the Cryptocurrency market could see further downside over the next few months (2018 Precedent).

Read: Terra Luna Classic Price Prediction 2023, 2025, 2030 and 2040

Will LUNC Go Up? Analysis of recent performance

LUNC Monthly Performance

July: -27.9%
August: +126.9%
September: +29.5%
October: -17.3%
November: -36.6%
December: -3.8%

In the last 6 months, LUNC has gained in just 2 months and has traded negatively in the other 4 months. The month of August 2022 was the most fruitful month for LUNC as it gained over 100% in its price. In October and November combined, LUNC lost over 50% of its value. However, after continuing to crash in December, LUNC has had two great days and has begun to move higher.

Will luna classic reach $1

Could Luna Go back up again?

There are 3 major factors that will determine if Luna Classic goes back up again

Government regulation
Macroeconomic Factors
Token Utility

Would Luna ever recover – New Government regulations?

Government regulation – With the crash of FTX in November and Luna earlier, there is an increased chance of Government regulation. The SEC vs XRP case will determine whether such regulation will come via court precedents or via new laws. New laws are likely to be focused on increased transparency on token ownership (KYC, Share), voting rights, and taxation. This will help well-designed tokens and impact many of the tokens that are adding zero value and /or are mostly owned by the Founders themselves.

Will Luna Classic Recover? Macroeconomic Factors

Inflation has begun to fall and is below 8%, it is likely that rate hikes will ease a little but unlikely to stop before inflation falls below 4%
Crude Oil is hovering below $80 and is likely to fall lower on account of the China economic crisis.
Overall, there is some good news on the economic front from an inflation perspective. However, there is no good news from a growth perspective

Will Luna recover? Token Utility

The community has organized really well and has accomplished a lot of milestones between June and September. This included Getting new validators and working hard to get the governance mechanisms in place. The community is central to LUNC’s success.
However, the community has not accomplished much after Burn was rolled out. There is a need for capital to develop the ecosystem for developing and sustaining use cases in the blockchain. Many of the technical papers written by developers have not won the support of the community yet.

Can Luna Classic Recover? $LUNC vs $LUNA Trading Volumes

LUNC tends to dominate for fewer days in a month but pumps much harder than $LUNA. For example, LUNC has had 13 days when Volume had risen above $1 B since July. It was just 8 days for $LUNA. This volatility is strongly connected to newsflow and community activities which is absent in the case of $LUNA.

	Days LUNC was ahead	Days LUNA was ahead
*December*	*27 days*	*0 days*
*November*	*29 days*	*1 Day*
*October*	*24 days*	*3 days*
*September*	*25 days*	5 days
August	*11 days*	*20 days*
July	*24 days*	*7 days*

Read: Cardano Price Prediction

Will Luna Recover? What about Trading Volume?

Looking at the $LUNC volume data for the last 31 days, it is clear that Luna Classic is also very dependent on high volumes for the price to increase.

Currently, the trading volume of LUNC has been lower and so is reflected in the price of LUNC that has crashed this month.

Will Luna Recover? Ed Kim and Binance Developments driving 'A New Hope'? (1)

Will Terra Luna Classic recover?FAQs

Will Terra Recover?

Both the Terra tokens have a good chance of recovery. While Luna classic has the investor base and community to help it recover, Terra Luna 2.0 has the ecosystem and use cases to propel it forward.

How will Luna recover going forward?

At the moment, the only factor in the control of the community is delivering more use cases. This is a work in progress and the community is making very slow progress.

Should you sell $LUNC?

LUNC is likely to go down further in the short term after rising a little due to the Binance announcement. Secondly, there is no guarantee it will immediately rise again. However, a massive pump is highly likely if the community delivers another innovation. The community is stalled at the moment but is unlikely to remain so over the next 4 weeks. A sell or buy decision is therefore completely dependent on the willingness to lose some money in the hope of gaining a lot.

Will Luna Crypto Recover?

Yes, there is a reasonable probability that LUNC Crypto can recover. However, the recovery will depend on multiple factors – Government regulation, increased liquidity, and increased use cases in the Luna Classic ecosystem. At the moment, there is increased uncertainty on each of these metrics.

Will Luna Classic BURN alone be enough for Luna Classic’s recovery?

LUNC is in a competitive market where buyer interest depends on the demand for Luna Classic coins. Burn is a method to destroy supply and not increase demand. Supply restriction can drive prices higher only to a certain level. Instead, how the LUNC community can create demand for SHIB over the next few weeks in terms of a consumer/ business proposition will determine if LUNC heads to $1

Can Forked Coins like Luna Classic perform well?

As you are aware, Ethereum is a hard fork from Ethereum Classic and Ethereum Classic is now open source. While ETH has grown 579% in the last 5 years, ETC has delivered a 292% return. But ETC did peak at a 1000% plus return between 2017 and 2021.

Will Luna recover to $100?

It will take more than 46 years to reach $1. So it is fair to say that Luna is unlikely to recover to $100

Will Luna rise again?

Yes, Luna could rise again as the macroeconomic environment is improving a little. However, it is unlikely to be sustainable as numerous experts are predicting that the macro environment will worsen again next year. Secondly, with the LUNC community failing to develop new Use cases or partnerships, token usage is unlikely to rise in 2023. So even if Luna rises in 2023 due to favorable economic conditions, it is unlikely to be a top-performing token.

Will Luna Coin have a future?

While the probability of Luna Coin rising in price is moderate, it is difficult to say if the coin has a future in the medium to long term. While considering a slightly longer period of time, other factors come into play. Number 1 is Technology change. It. is unclear how blockchain technologies and tokens will evolve 5-10 years down the line. Two, regulatory. The regulatory environment will surely change as politicians would want to play saviors for unprepared voters. Thirdly, the competitive environment. With thousands of tokens at present, it is unclear how many will eventually survive.

Can Luna get back to $1?

To reach $1, Luna Classic needs to grow by 7,692 times. As we know that it has shown 55.28 times growth to reach its all-time high price of $116.1 (which it achieved in mere 4 months). Therefore, to get back to $1, the Luna classic will need more than 46 years, which is ofcourse not practical.

In Sum, the chances of $LUNC recovering are good as the overall cryptocurrency market has also begun a path of recovery. However, should the community activities stall, it could end the cryptocurrency fairly quickly.

Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.

Overall Outlook	Partially Positive

1. Market's Wisdom	Partially Positive
1a. Market Data	Neutral
1b. Technical Recommendation	Buy

2. Crowd's Wisdom	Neutral
2a. Social Media Buzz	Steady
2b. Social Media Sentiment	Neutral