TerraUST and LUNA nosedived to $0 as they fell 100% after their UST got depegged from 1:1 from the USD. The dramatic crash wiped out investors’ money in just 3-trading days making all their bags seem worthless. Luna was above $100 during the start of the month and is now trading with three ‘zeroes’ in the front. Terra LUNA’s circulation has rapidly increased which would dampen its growth most likely making it dwell in its ‘zeroes’.
While Terraform Labs founder Do Kwon has been repeatedly tweeting about a revival plan, not many believe the token could be resurrected to life. First and foremost, trust in the project is eroded and secondly, investors doubt Do Kwon’s ability to set things right.
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How Many Terra LUNA Tokens Are In Circulation Now?
The crash led to Terra LUNA being widely available in circulation and the token is no longer considered ‘scarce’. There are 6.5 trillion LUNA tokens in circulation with a market cap of $1.1 billion. LUNA’s 24-hours trading volume now stands at $2.1 billion.
Though LUNA is available dirt cheap, not many investors consider buying it a viable option. LUNA spiked nearly 3,000% during the weekend but again dipped this week in double digits. Also, the majority of the leading exchanges have delisted LUNA from their platform which is not available for trading.
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Will LUNA Recover From Here?
LUNA might have a tough time in terms of recovery with its 6.5 trillion tokens in circulation at the moment. The enormous tokens in circulation might not allow it to breach its all-time high of $118 anytime soon. To reach $1, Terra LUNA’s market cap needs to grow to around $6.9 trillion, which is highly impossible.
For LUNA to even reach $0.1, its market cap needs to grow around $690 billion, which is again not possible. Therefore, the chances of LUNA coming back to its previous glory is quite slim and might remain to trade with ‘zeroes’. However, the team needs to have a solid plan for revival not just on paper, but need to put it to work in real-time. Only then there might be hopes of LUNA coming back to life.
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At press time, LUNA was trading at $0.00017275 and is down 26.6% in the 24-hours day trade.