Luna Classic pumped 27% in price from December 22-27 – beating most of the cryptocurrency industry in a shock breakout.
The fallen Terra Luna token recovered a market cap of $1 billion for the first time in weeks. The Luna Classic (LUNC) price rally followed bullish sentiment among investors surrounding new proposals in the community.
But is Luna Classic a good crypto to buy in 2023?
Let’s take a closer look at the Luna Classic burn rate and whether LUNC is on track to hit $1 in 2023.
Can Luna Classic hit $1 in 2023?
If you buy just $200 worth of LUNC today you’d be a crypto millionaire by the time Luna Classic recovers to $1.
But here’s the thing.
A Luna Classic recovery to $1 in 2023 can only be reached by two paths:
- By market cap
- By burning tokens
The recent LUNC price breakout came after the community voted to stop sending 50% of all burn funds towards community ecosystem development. Currently, there’s a 0.2% burn tax on all on-chain and Binance LUNC trading.
Can Luna Classic hit $1 in 2023 by market cap?
There are currently 6 trillion Luna Classic tokens in circulation.
Here’s the implied market cap Luna Classic requires to hit the following prices:
- $0.001 price – $6 billion market cap
- $0.01 price – $60 billion market cap
- $0.1 price – $600 billion market cap
- $1 price – $6 trillion market cap
A $6 trillion market cap would make LUNC six times larger than the entire crypto industry today. That means 18 times larger than Bitcoin.
Given we’re not expected to see a bull market until 2024, the chance that Luna Classic hits a $6 trillion market cap in 2023 is slim.
Can Luna Classic burn its way to $1 in 2023?
If Luna Classic could cut its token supply down to 1 billion tokens in 2023, then LUNC would immediately be worth $1.
The Luna Classic burn tax began by burning huge amounts of tokens – in fact, it was on track to reach $1 in the next three to five years. But then the burn tax was cut down from 1.2% of transactions to 0.2%. In November, the amount of LUNC tokens burned per month halved as just 9.2 billion LUNC was destroyed.
At this rate, it would take over 54 years to burn the LUNC supply down to 3 billion.
Compare this with the leading hyper-deflationary token EverGrow. EverGrow destroyed almost 1% of its supply in November 2022 and is on track for the same explosive price breakouts you’d get when LUNC hits $1 – just in the next bull market.
EverGrow burns the most supply of any other crypto in the industry. It burns tokens by a transaction tax (2% set aside for burns) and through an ecosystem of apps which each send 100% of revenue towards burning EverGrow.
There’s still a lot of voting going in in the LUNC community, so by backing proposals to up the burn rate or create new burn mechanisms you could help LUNC hit $1 next year.
Read more about how EverGrow does it: https://evergrowegc.com/
What’s the Luna Classic roadmap like for 2023?
Key indicators to watch out for in 2023 will be the Terra Rebels, as they attempt a repeg in Q1 of 2023.
The Terra Rebels have emerged as the lead development team for Luna Classic. They’re already building new back-end infrastructure to help LUNC investors keep their tokens in on-chain wallets after Terra launch the new Inter Station wallet.
According to the Terra Rebels website, a re-peg will be attempted shortly after.
This could provide bullish sentiment and create price pumps – like we saw in September after a Terra Rebels proposals to burn 1.2% of LUNC trades with a tax was implemented on Binance, and the LUNC price pumped 500%.
Keep on eye on Terra Rebels, and make sure you buy before any such successful proposal passes.