The circulating supply of Terra (LUNA) has continuously gone up to nearly $7 trillion since the UST debacle began

Terra (LUNA) circulating supply has been steadily increasing since UST started failing. This mainly comes from people exchanging their staked UST for the digital asset, which has caused its supply to skyrocket in such a short period. The LUNA price has decreased to reflect the large number of tokens sold into the market. Now that the dust has finally begun to settle, the question remains where the asset’s price could end up.

Is $1 for Terra (LUNA) still possible?

Now, it sounds funny to argue about whether the price of LUNA can return to the $1 level when less than two weeks ago, the price was above $100. However, this is the case as the digital asset is currently only about 4 zeros short of $1, and even that seems like a generous value. What investors are thinking about now is whether the price of the digital asset can recover in any meaningful way.

To really gauge whether LUNA can recover to $1, the first thing to look at is the circulating supply of the digital asset. In less than two weeks, it has grown from over 300 million to almost 7 trillion tokens in circulation at this writing. As the supply remains above 300 million, the price is trending at $100, meaning its market cap averages around $33 billion depending on price movements.

Terra's circulating supply (LUNA) has been steadily increasing since UST started failing. This mainly comes from people exchanging their staked UST for the digital asset, which has caused its supply to skyrocket in such a short period of time. In turn, the LUNA price has decreased to reflect the large number of tokens sold into the market. Now that the dust has finally begun to settle, the question remains where the asset's price could end up.  $1 for Terra (LUNA) still possible?  Now, it sounds funny to argue about whether the price of LUNA can return to the $1 level when less than two weeks ago the price was above $100. However, this is the case as the digital asset is currently only about 4 zeros short of $1, and even that seems like a generous value. What investors are thinking about now is whether the price of the digital asset can recover in any meaningful way.  To really gauge whether LUNA can recover to $1, the first thing to look at is the circulating supply of the digital asset. In less than two weeks, it has grown from over 300 million to almost 7 trillion tokens in circulation at the time of this writing. As the supply remains above 300 million, the price is trending at $100, meaning its market cap at that point averages around $33 billion depending on price movements.  Currently, the total supply of digital assets has now increased by more than 1,000,000% and reached a little over 6.9 trillion, according to CoinMarketCap. For LUNA to hit $1, that would mean the market cap would have to hit $7 trillion and that is if the current supply remains steady. This is currently not possible as the entire crypto market cap is at a peak of $3 trillion.  However, in order for LUNA to reach its previous market capitalization prior to the crash, the token would have to be trading at $0.005. Since a $33 billion market cap is still within reach, it's safe to say it's still within reach.  One thing to keep in mind is investor sentiment. So many people have lost hundreds of millions of dollars on the token that faith in it has dried up. Therefore, with any significant increase in price, there will be offsets that cause the token price to fall again.   This leads to the conclusion of this analysis that LUNA price could rally back up to $0.005. But given the current market conditions, this may not be the case in the short term and is entirely dependent on whether the supply stops growing or not.

Currently, the total supply of digital assets has now increased by more than 1,000,000% and reached a little over 6.9 trillion. For LUNA to hit $1, that would mean the market cap would have to hit $7 trillion and that is if the current supply remains steady. This is currently not possible as the entire crypto market cap is at $3 trillion.

However, for LUNA to reach its previous market capitalization before the crash, the token would have to be trading at $0.005. Since a $33 billion market cap is still within reach, it’s safe to say it’s still within reach. One thing to keep in mind is investor sentiment. So many people have lost hundreds of millions of dollars on the token that faith in it has dried up. Therefore, with any significant increase in price, there will be offsets that cause the token price to fall again.

This leads to the conclusion of this analysis that LUNA price could rally back up to $0.005. But given the current market conditions, this may not be the case in the short term and is entirely dependent on whether the supply stops growing.

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