There has been questioning common in the LUNC community saying can LUNC make $1 or just a pipe dream sold by crypto “degens” to “shill” their bags? Although, pundits like Michael Van de Poppe of Eight Global have asserted that LUNC cannot clinch the $1 price point.
Conditions That Will Get LUNC To $1
To find our answer, we put some perspective into consideration. Data show that LUNC can hit the price $1 price point under two conditions.
- The first condition is that LUNC achieves a market cap of $6.9 trillion, nearly seven times the entire crypto market cap. On the other hand.
- The second condition is for LUNC to get back to a total supply of $40 billion.
Although the first scenario may be very unfeasible as the project will have to build an economy capable of bypassing the GDP of Japan, the third highest in the world.
The second case sounds possible in the space of time. The question now is how long will it take to burn a total supply of 6.86 trillion LUNC representing 99.42% of the total supply at a burn rate of 1.2%.
Assuming the LUNC hits back to a $40 billion market cap. So far the LUNC price to reach $1, and the Terra classic supply has to be reduced 99% from 6.9 trillion to 40 billion which a 1.2% burn rate can do, but how long will it take?
Analysis On How LUNC Can Hit $1
Reddit user u/squatchi says, “If the float (Float is the regular coins that a company has issued to the public available for investors to trade.) decay exponentially by using the rule of 72. 72/1.2=60, so the float will halve when the on-chain volume reaches 60 times the float. It will take about seven halvings to get to the 99%. it is reasonable for the float to turn over every 3-10 days, so realistically we are looking at somewhere in the range of 3-9 years before that much (99% of supply is burnt) is burned.”
Another Reddit user, u/CASASToken, calculates: “If on-chain volume remains about 100B-200B LUNC every day, around 3B LUNC will be burned daily on average. So in 1 year, almost 1 Trillion will be burned if it stays constant for a year. So by burning 1T LUNC per year. It will take 6 to 7 years to reach a $40B market cap and 1 dollar LUNC price.”
From the analysis above, for the Terra classic (LUNC) to hit $1, will need up to 7-8 years for a 1.2% burn to burn through 99% of the current supply.
Recall, that the goal of the community is to maintain and revive the price of the token, so there is every possibility of the coin making the $1 level.
Read Also: Attorney John Deaton Shares Scenarios On How Issues Between SEC And Ripple Could Be Settled
Recently, the santiment feed stated that LUNC’s price movement and trading volume closely resemble that of Dogecoin in its run-up to $0.8. However, this could also imply that it may be doomed to face the same fate with a subsequent price crash.
The community has taken a bold step in maintaining the token’s price by designing a 1.2% tax burn proposal which is being voted for on the 10th of September and ready to go live on the 20th of September, 2022.
According to a previous post by Cryptolifedigital, a new proposal by Max Callisto to re-enable Inter Blockchain Communication (IBC) could help incentivize decentralized app (dApp) development.
Recently, the LUNC has been doing great, as it is the top traded asset on KuCoin by volume surpassing Bitcoin. The trading volume currently sits over $300 million compared to about $230 million in Bitcoin.
LUNC is currently trading at the $0.0003281 price point, down 19.9% in the last 24 hours.
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