Terra (LUNA) Price Prediction 2025-2030: Key Factors Influencing LUNA’s Long-Term Future
It has now been nearly ten months since the crypto project Terra Luna experienced a catastrophic collapse in May of last year. Subsequently, FTX also collapsed, and more recently, the crypto-friendly Silicon Valley Bank (SVB) faced a similar fate.
With the SEC charging Terra founder Do Kwon with fraud over the $40 billion crypto crash, the market has been adversely affected. Given the lack of positive news regarding its price action, it is undeniable that LUNA may never be considered a ‘safe’ cryptocurrency. Therefore, it may not be able to return to its former heights again.
Learn Worth Prediction for LUNA 2023-24
Stablecoins, such as UST, were created to protect investors from the extreme price volatility of regular cryptocurrencies, like Bitcoin (BTC).
As fiat currency is pegged to reserves like gold, stablecoin is pegged to either fiat currency (e.g., USD) or supporting cryptocurrency. In this case, TerraUSD was pegged to Luna. However, herein lies the conflict. A cryptocurrency is not equivalent to gold reserves. As LUNA prices became destabilized, it impacted UST prices as well, leading to the collapse of the entire stablecoin system in the second quarter of 2022.
The stablecoin project aimed to complement the price stability and widespread 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 significant in instigating the cryptocurrency crisis thereafter.
LUNA was once one of the market’s best performers, ranking among the top 10 cryptocurrencies by market value towards the end of 2021.
A Bloomberg report from May 2022 sheds light on the further developments that transpired. It was in early May 2022 that the Terra system collapsed as large investors began selling their tokens. The move caused a massive drop in the price of the coins. While the price of UST fell to $0.10, LUNA’s value plummeted to nearly zero.
The cryptocurrency market lost around $45 billion within a week in the ensuing massacre, leading to a global crash in the market. The leadership of the Terra system hoped to buy Bitcoin reserves to purchase more UST and LUNA coins to stabilize their prices, but the plan failed.
Thousands of investors worldwide lost significant amounts due to the mishap. In the immediate aftermath, the Korean National Tax Service imposed $78.4 million in corporate and income tax on Do Kwon and Terraform Labs after Terra investors filed a police complaint against the co-founder.
In truth, an affected investor even broke into Kwon’s house in South Korea, prompting his spouse to seek police protection.
In July 2022, News1 Korea reported that South Korean prosecutors raided 15 companies, including seven cryptocurrency exchanges, as part of the investigation into the Terraform collapse. More than 100 individuals who filed complaints with the prosecutors’ office reportedly had losses totaling roughly $8 million.
A few days ago, the Financial Times reported that South Korean prosecutors have requested Interpol to issue a Red Notice against Kwon. Kwon, however, tweeted that he is not on the run from any government agency. He added that the company is in full cooperation and has nothing to hide.
Many from the industry had been warning the cryptocurrency community about the impending doom. Kevin Zhou, CEO of Galois Capital, was one such individual. He stated that the outcome was inevitable because the “mechanism was flawed and it didn’t play out as expected.” However, most people didn’t pay any heed.
On May 25, Bloomberg reported that a new version of LUNA was launched following a hard fork, with the new LUNA coin no longer linked to the devalued UST coin. The older currency is now known as Luna Classic (LUNC), while the newer one is called Luna 2.0 (LUNA). Although the older cryptocurrency has not been entirely replaced, its community may gradually dissolve as more users transition to LUNA 2.0.
The new initiative included an airdrop of new LUNA tokens to those who held Luna Classic (LUNC) and UST tokens and suffered losses. A significant portion of the minted currency is reserved for development and mining operations. Currently, there is a supply of 1 billion LUNA tokens.
Recently, the 1.2% tax burn proposal, dubbed proposal #4661, passed the governance vote, as confirmed in a tweet by proposal author Edward Kim. Terra Rebels also confirmed the move, tweeting that out of 96% cast votes, 99% favored the 1.2% tax burns.
The collapse of the twin coins proved to be a harbinger of increased government regulations, if not outright opposition, in the cryptocurrency industry. The anonymous nature of the industry, once touted as the foundation of the decentralized cryptocurrency market, was widely embraced. However, as soon as people lost their investments, they rushed to government authorities for redressal.
This event prompted government financial authorities to seize the opportunity to push for regulations and rules in the crypto industry to tackle price volatility and money laundering.
The entry of corporate institutions with government oversight into the industry had already set the tone for what was to come, but this collapse furthered this trend. Now, cryptocurrency entities, whether large or small, will be overseen by central banks around the world. In such situations, it will be crucial to observe how the industry manages to uphold its anonymous and decentralized nature.
A recent Bloomberg report says that upcoming legislation would ban algorithmic stablecoins like TerraUSD, the collapse of which led to a global crypto crash. The said bill is currently being drafted in the U.S. House. The bill would make it illegal to develop or issue new “endogenously collateralized stablecoins.”
In a recent interview, Kwon stated that his confidence at the time was justified as the market success of his Terra ecosystem was inching close to $100 billion, but his faith now “seems super irrational.” He admitted the possibility of a mole within the team but added, “I, and I alone, am responsible for any weaknesses that may have been presented for short sellers to take advantage of.”
Why those projections topic
The future of LUNA is a crucial topic for the entire cryptocurrency industry. Launched as part of the regeneration strategy, its performance so far has not been particularly celebratory.
Transactions on the Terra 2.0 blockchain are validated through the proof-of-stake (PoS) consensus mechanism. The network has 130 validators operating at any given point in time. As a PoS platform, the power of the validator is related to the number of tokens staked.
How LUNA trades will determine the course of not only this particular cryptocurrency but also the array of stablecoins in the market. If it succeeds in gaining the trust of investors, the project will go a long way in furthering the cause of the asset class of stablecoins.
In this article, we will lay down the key performance metrics of LUNA, such as its price and market capitalization. We will then summarize what the most prominent crypto-influencers and analysts have to say about LUNA’s performance, along with its Fear & Greed Index. We will also briefly discuss whether you should invest in stablecoins or not.
LUNA’s worth, quantity &the whole lot in between
Starting its journey at around $19 on May 28, 2022, LUNA quickly dropped below $5 the next day. By the end of May 2022, its value was just above $11, but it soon spiraled downward as June began.
Over the following months, the price of LUNA kept oscillating between $1.7 and $2.5. At press time, it was trading at $1.48.
Supply: LUNA/USDT, TradingView
It’s worth noting that back in June 2022, LUNA’s market cap was over $300 million. However, it fluctuated between $210 million and $300 million throughout much of July. Currently, the market cap remains within that range.
The turmoil following the collapse of the dual coins has impacted the entire market. LUNA has been particularly susceptible to volatile market conditions. The Russia-Ukraine conflict and increasing global crypto regulations have also constrained market movements.
LUNA’s 2025 Predictions
Before delving further, readers should be aware that market predictions from various cryptocurrency analysts can vary widely. Often, these predictions have proven to be inaccurate. Analysts use different sets of parameters to arrive at their forecasts, and no one can predict unforeseen socio-political events that ultimately impact the market.
Let’s now examine what other analysts have to say about LUNA’s future in 2025.
A Changelly blog post reported that experts, after analyzing Terra’s past performance, have projected that LUNA’s price will fluctuate between $7.26 and $8.62. The average trading price for the year is expected to be around $7.46, with a potential ROI of 384%.
Similarly, Telegaon is quite optimistic about LUNA’s prospects, forecasting its maximum and minimum prices in 2025 to be $52.39 and $69.18, respectively. It predicts an average price of $61.72 for the year.
LUNA’s 2030 Predictions
The Changelly blog post also projected that LUNA’s maximum and minimum prices in 2030 will likely range between $48.54 and $57.68. The average price for LUNA in that year is expected to be around $50.24, with a potential ROI of 3,140%.
Disclaimer
The predictions mentioned above are more recent, and prior to the recent developments, analysts were much more optimistic about LUNA’s prospects.
For instance, Finder’s panel of experts forecasted a price of $390 for LUNA by 2025 and $997 by 2030. Ben Ritchie of Digital Capital Management stated, “The LUNA token will continue to gain traction as long as there are no clear regulations on stablecoins. We believe that LUNA and UST could become dominant stablecoins in the crypto space. As LUNA is burned to mint UST, increased adoption of UST will significantly benefit LUNA. Having Bitcoin as a reserve asset is a commendable decision by Terra governance.”
However, there were dissenting views as well. Dimitrios Salampasis remarked, “Algorithmic stablecoins are considered inherently fragile and unstable. In my opinion, LUNA will remain in a state of perpetual vulnerability.”
At one point, there was even speculation about Terra potentially becoming one of the most staked assets.
Supply: Finder
Worry & Greed Index
As legal issues for the Terra founders persist, there appears to be little chance of investors regaining trust in the altcoin. Many exchanges continue to display cautionary tags alongside LUNA, and investors remain highly cautious. Despite this, at the time of writing, the Fear & Greed Index for the cryptocurrency market is in the ‘Greed’ category.
Source: Alternative.me
We will need to observe how the LUNA developers and investors respond in the coming weeks. If they manage to burn enough tokens to boost its value, it could positively impact its future prospects. A concerted effort from the cryptocurrency community, particularly the LUNA team, could go a long way in restoring investor confidence.
In an interview with Laura Shin on the “Unchained” podcast, Kwon explained that he moved to Singapore from South Korea before the Terra ecosystem’s collapse and should not be perceived as fleeing from authorities. He denied allegations of evading law enforcement.
Kwon stated, “Regardless of the issues in Terra’s design and its vulnerability to market forces, the responsibility and accountability lie with me alone.”
Recent reports indicate that Kwon may face a class-action lawsuit filed in a Singaporean court by over 350 international investors, who claim to have lost approximately $57 million due to the collapse of the TerraUSD (UST) algorithmic stablecoin and its ecosystem.
Last month, the New York Times interviewed Ethereum co-founder Vitalik Buterin, who alleged that the Terra Luna team attempted to manipulate the market to sustain the value of their native cryptocurrency. He also noted that many “knowledgeable individuals” had warned that Terra was “fundamentally flawed.”
Amid the massive market downturn triggered by the FTX collapse, we are seeing substantial withdrawals. LUNA remains one of the most severely affected tokens in this ongoing crisis, having dropped around 30% over the past 2-3 days. This decline has been exacerbated by Silvergate’s liquidity issues and the crypto market’s reaction to them.
This current downturn marks the second major crash in the crypto market this year following the FTX debacle. LUNA, which was a leading factor in the initial crash in May, has also been among the hardest-hit tokens in this second wave, with its value falling by 35% since FTX’s bankruptcy. Despite this, there are signs that LUNA may be recovering.
According to local media reports from South Korea, prosecutors have frozen assets worth $92 million linked to Terra tokens, as directed by the Seoul Southern District Court. These assets were seized from Kernel Labs, a tech company closely tied to Terraform Labs. It has been revealed that Kernel Labs CEO Kim Hyun-Joong previously served as Vice President of Engineering at Terraform Labs.
Additionally, the Terra Classic team is planning to advance two significant proposals in the coming days that could impact the burn rate and funding for the community pool.
On a positive note, there have been some encouraging developments in the cryptocurrency sector, such as Dubai implementing federal regulations and FTX retrieving customer funds. These events are viewed as potential drivers supporting cryptocurrencies like Terra Classic.
However, Terra Classic core developer Edward Kim has cautioned the community that the proposals might significantly affect the funding for the community pool due to potential miscalculations in the data shared within the proposals.
On January 8, 2023, Edward Kim, a core developer of Terra Classic, shared on Twitter that he and dfunk, the creator of proposal 11242/11243, had conducted some chain research. They discovered that estimates of fuel contributions were 13 times lower than the actual amount flowing into the community pool.
In related news, Singaporean authorities have launched an investigation into Do Kwon’s Terraform Labs, according to a recent Bloomberg report. Singaporean police issued a statement confirming that “investigations have commenced regarding Terraform Labs” and noted that the inquiries are “ongoing,” with Kwon currently not in the city-state.
This development follows the recent lawsuit by the U.S. Securities and Exchange Commission (SEC) against Terra founder Do Kwon and Terraform Labs for securities fraud.
It is crucial to reiterate that market forecasts are not guaranteed and can be highly inaccurate, especially in the volatile cryptocurrency market. Investors should exercise caution before making any investments in LUNA.