Terra (LUNA) Price Prediction 2025-2030: Bears override LUNA’s gains

ambcrypto.com:

Disclaimer: The datasets shared in the following article have been compiled from a set of online resources and do not reflect AMBCrypto’s own research on the subject.

The price of Terra Luna (LUNA) tumbled 8% after the news of Terra co-founder Do Kwon’s arrest reached the crypto community. Terra co-founder Do Kwon, who was on the run since the Terra-Luna crisis, was finally arrested in Montenegro on 23 March.   

LUNA’s price fell to $1.27 on the day, down 8% within the last 24 hours. It was trading at $1.29 at press time. 

It has now been nearly ten months since the Terra Luna project experienced a catastrophic collapse in May 2022. Later, major crypto exchange FTX collapsed in November 2022 and recently, the crypto-friendly Silicon Valley Bank (SVB) also collapsed. 

Read Price Prediction for LUNA 2023-24

Stablecoins, such as UST, were created to protect investors from the extreme price volatility of popular cryptocurrencies, such as Bitcoin (BTC).

As fiat currency is pegged to reserves such as gold, a stablecoin is pegged to either a fiat currency (e.g. USD) or a supporting cryptocurrency. In this case, TerraUSD was pegged to Luna. But herein lies the conflict. A cryptocurrency isn’t equivalent to gold reserves. As LUNA prices got destabilized, it had an impact on UST prices too, and the entire stablecoin system collapsed in the second quarter of 2022.

The stablecoin project was aimed at complementing the price stability and wide adoption of fiat currencies with the decentralized model of cryptocurrency.

Even those who are only vaguely familiar with the cryptocurrency industry know of the apocalyptic collapse of LUNA and UST in May 2022. This collapse was crucial in instigating the cryptocurrency crisis thereafter. 

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