Terra Classic (LUNC) — formerly Terra (LUNA) — reached an all-time high price of $119.18 on April 5, 2022, as well as an all-time high market cap of $41 billion on the same date. This was just one month before the UST collapse, leading to a price crash for the native token LUNC.
Moreover, following the crash, the Terra DAO approved decisions to mint trillions of tokens, changing the whole tokenomics for the project, which became one of the highest circulating supplies among all other cryptocurrencies.
In this context, LUNC’s perceived value was highly affected by its massive supply inflation. Considering data retrieved by Finbold on August 30, with a circulating supply of around 5.82 trillion tokens, one LUNC would be worth close to $0.0070446 — 99.99994% less than its price all-time high in US dollars.
Notably, a hypothetical scenario of LUNC reaching the $119.18 price all-time high would mean an asset valued at over $690 trillion market cap. For comparison, the New York Stock Exchange (NYSE) has a total market cap of $22.65 trillion — meaning that Terra Classic will never reach these prices unless some massive token burns go through.
LUNC Price Analysis
Meanwhile, LUNC is trading at $0.000065 at the time of publication, which would potentially offer the possibility for Terra Classic’s investors to gain over 10,000% for purchases made at this moment, if the ecosystem ever meets previous demand.
From a demand perspective, the DeFi ecosystem for Terra Classic has also suffered from a massive run. Data by DefiLlama shows a total value locked (TVL) of only $1.6 million among all LUNC protocols, by press time.
The Terra blockchain was once among the most valuable ecosystems with $16.20 billion in TVL, before the UST collapse. Now, LUNC sits among the least valuable DeFi chains, which highlights all the challenges the Terra Classic community must face if they intend to conquer the all-time high demand back for LUNC.
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