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Can (Terra) Luna Crypto Coin Recover In 2022

What Happened To Luna Crypto

According to the law of supply and demand, if something is 18570x more, it becomes more valuable per unit. It is no longer a rare or rare phenomenon - crypto has been dubbed the ‘digital gold’ by the Winklevoss twins, the founders of the billions of Gemini Exchange.

Add to the investors who sell LUNA themselves in panic, and financing, and the result was that LUNA dropped more than 99% all the time from $ 119 to less than a dollar, then 99% again a cent, and then 99% is twice as much as at present. 2022 low of $ 0.00000112 against Binance USD (BUSD), one of the few trading pairs that was still in existence at the time - a lot of crypto trading was off the list.

It did not help that day Bitcoin dropped below $ 27,000, and the S&P 500 below 4,000, both for the first time in more than a year.

Considered one of the most controlled, highly secure crypto platforms for beginners, eToro.com has stopped LUNA trading for less than a cent - saving those who wanted to buy LUNA crypto tokens for both of those 99% drops.

The cause of the crash is complex, and many LUNA investors are wondering what happened to a coin that once had the top 10 crypto assets per market head - leading one investor to ask @terra_money to 'explain in terms of football'.

LUNA crash

The first UST crash was bigger than usual, and TerraUSD owners did not wait for it to stabilize - they lost their LUNA UST creating a high-profile LUNA offer, which was also sold out of shock. The situation was accelerated by UST losing 90% of its value and LUNA crashing heavily.

Often crypto crashes, whether in Bitcoin or altcoins, are the result of shock trading, shortages, losses, and the elimination of long positions that are forced to sell. The number of available coins - still distributed and any still in stock - does not change.

So if the panic was due to a particular FUD (fear, uncertainty or doubt) caused by negative news - such as China blocking Bitcoin, a crypto exchange hacking, or an epidemic - later that left the headlines, the coin could recover in vain. has changed the internal value of the character and the technology behind it.

There would still be the same number of coins distributed. The process of digging for new Bitcoin for example is slow through design. The total total supply of BTC also remains at 21 million (LUNA's maximum supply is now 6.9 trillion).

So the BTC price seems to have only collapsed on the exchanges - where people are scared and long-term investors are buying blood - and so far have historically been recovering to put up new highs.

However, with the collapse of Terra (LUNA), due to the nature of algorithmic stablecoins, the black swan event caused Terra (LUNA) inflation, striking out a billion LUNA coins immediately, and then out of control into billions.

Can Restore LUNA

The only way for LUNA to recover from anywhere near its previous high of more than $ 100, would be to burn a large amount of LUNA revolving from 6.5 trillion today, back to somewhere close to 350 million that existed before the crash.

That is no easy task - it has been announced as part of the LUNA and UST rescue program but it remains to be seen whether it will be achieved. Another question is whether crypto will recover - Bitcoin holds about $ 30,000 but is currently going up or closing the candle above the daily EMA 8.

If the Terra offer does not burn, even a return of $ 1 is statistically impossible. The total cryptocurrency market was $ 3 billion, in November 2021 when Bitcoin was over $ 69,000, and Ethereum was over $ 4,800.

With LUNA value of $ 1 per coin, with a supply of 6.5 trillion then the market capitalization of LUNA will be $ 6.5 trillion, double the value of all cryptos, at that peak.

The Bitcoin market today is about $ 570 billion - the LUNA market limit could change Bitcoin before the price of LUNA reaches $ 0.09. No crypto has ever responded to Bitcoin.

LUNA will launch Ethereum, and it is unlikely that most DeFi will work on ETH, at about four cents - $ 0.04. Is Luna recovering? Based on tokenomics, until the circulating supply is reduced.Or until the total crypto market - today $ 1.27 trillion - is growing. Compared to gold with a market value of $ 11 trillion, cryptocurrency is looked down upon. Tyler and Cameron Winklevoss predict that crypto may surpass Gold as a value store in years to come.

Price for LUNA today

The price for LUNA is now around $ 0.00018. LUNA will return to its previous $ 40 billion market capitalization - which is a real mid-term price target, and it is still difficult as Terra's reputation has plummeted - by about half a cent, or $ 0.006.

LUNA can still offer strong short-term prices as many retailers want to buy LUNA. The price of LUNA today is already 160x higher than the May 13 low of $ 0.00000112.


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