LUNA coin news today is a mixed bag. The price has dipped significantly since its launch in late May, with the token now at almost $19 apiece. This is 73% below its high. But investors should keep in mind that this is a volatile market. Investors must exercise caution before rushing to purchase LUNA.
Despite the price drop, Luno executives are still hopeful that Terra investors will come back to the coin. They say the price is likely to climb above $1.5 in the coming months. However, a slight correction is expected in August. By September 2022, the price is expected to double, and shoot towards the $4 range. If the trend continues, it would hit $10 in November 2022.
The LUNA token will have an unlimited supply. At the time of genesis, 30% of its supply can be traded for free. However, a significant portion of it will be reserved for mining and development operations. The total circulating supply is over $40 billion. Terra will maintain a community-owned chain.
Despite the fact that LUNA shares the name of the crypto that lost more than 100 percent of its value last month, there are still many concerns about the new coin. While the LUNA blockchain was forked from the code of the defunct cryptocurrency Terra, the main goal of the new coin is to resurrect the crypto ecosystem. There’s also a version of the LUNA coin called LUNA Classic. This coin, unlike the new LUNA, saw a significant increase before the LUNA fork. However, it’s down 20% over the next 24 hours, and is up 56% in value over the past week.
As LUNA continues to rise, the price of TerraUSD is also declining. TerraUSD’s collapse has sparked questions about the future of similar crypto assets. Luna, which is based on the burning of the Terra asset, was originally intended to be a stablecoin with a peg to the dollar, but recent large withdrawals have forced the de-pegging. This has inversely affected the LUNA price in an already bearish market.
During the May 2022, Terra’s community passed the Terra Ecosystem Revival Plan, which approved the creation of a new blockchain and native token. On the following day, the new Terra 2.0 network was launched. This network distributed the new LUNA token to holders and stakeholders. The plan also allocated a substantial portion of the new token distribution to developers.
The UST coin is the sister coin of Luna. It is an algorithmic stablecoin, which is different from other fiat-backed coins. The value of UST coin is backed by Luna. The purpose of a stablecoin is to maintain a constant value of $1 USD. Unlike fiat-backed currencies, stablecoins are meant to be stable and to serve as a stable store of value.
The UST peg helps Luna maintain its value. By utilizing a peg, the UST is not subject to fluctuations. This means that investors can trade their Luna for USTs to reap profit. However, it’s important to note that the UST is only a stablecoin compared to Luna.