Terra (LUNA) Circulating Supply Approaching 7 Trillion Puts Coin In Doubt of Reaching $1 Anytime Soon.
More investors continue to dump LUNA into the market as TerraForm Labs announces plans to make LUNA investors whole.
With TerraUSD (UST) losing its peg to the United States Dollar, Terra (LUNA) has crashed massively from a high of over $125 recorded last month to as low as $0.0000009.
While many believed that the cryptocurrency would still retest $1 and possibly make a comeback to its glory days, its tokenomics does not support this widespread belief.
Top Twitter account ‘The Moon’ with 1M followers asks a simple question,
“LUNA supply is so close to 7 trillion. Is $1 a pipe dream for $LUNA and $UST?”
$LUNA supply is so close to 7 trillion.
Is $1 a pipe dream for $LUNA and $UST?
— The Moon (@TheMoonCarl) May 19, 2022
Investors Dumping LUNA
Following the crash of UST, LUNA’s circulating supply has been on a rapid increase since the ugly incident occurred this month.
LUNA’s circulating supply has grown from 300 million tokens to nearly seven trillion within the space of fewer than two weeks. At the time of writing this line, LUNA’s circulating supply is around 6.53 trillion, thus prompting many to doubt that the digital currency would touch $1 anytime soon.
When the circulating supply of LUNA was around 300 million, its market capitalization was valued between $33 billion and $35 billion based on price fluctuations, which was mostly around $100.
LUNA’s Push to $1
At press time, LUNA is changing hands at $0.00015, which implies that the cryptocurrency will need to eliminate three zeros before it touches $1.
Based on the number of LUNA in circulation, in order for the cryptocurrency to be able to achieve the $1 feat, it would require a market valuation of nearly $7 trillion, an impossible task considering the fact that the entire crypto market is worth less than $1.5 trillion at press time.
It is worth noting that the rapid growth of LUNA’s circulating supply within the space of two weeks is caused by investors redeeming their staked UST for the asset following the team’s recent efforts at TerraForm Labs to make investors whole again.
Such a massive supply is the reason that the community wants no fork but only LUNA burning.
Recall that the Terra team launched a proposal to fork a new chain and airdrop new LUNA tokens to existing holders, as part of efforts to make investors whole.
While UST was not added to the plan, investors who were badly affected by the dip were left with no choice but to redeem their staked UST for LUNA.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
