Throughout May, Terra was the topic of the majority of news due to its spiral collapse, which resulted in a loss of over $40 billion in investor funds. Following its collapse, the original Terra blockchain was given up and rebranded as Terra Classic.
Seven projects have already launched on the new Terra blockchain, which does not allow stablecoins. Terra 2.0 went live on May 28 as part of Terra co-founder Do Kwon’s “Terra revival” plan, which was approved by the community.
Following the Terra UST de-pegging in May, the original LUNA fully lost all of its value after a dramatic price decline, resulting in billions of dollars in damages. Binance’s CEO, Changpeng Zhao, revealed that the company lost about $1.6 billion on its LUNA investment at the top.
No Gains, Yet – LUNA 2.0 Dead?
LUNA 2.0 got off to a rocky start, losing nearly 70 percent of its value in the first 24 hours. Since then, the LUNA 2.0 token’s average price has remained below $11. According to CoinMarketCap data, LUNA was trading at $5.04 at the time of publication, down 8 percent in the last 24 hours. Before the TerraUSD (UST) stablecoin lost its dollar parity on May 6, the previous LUNA was selling at roughly $86.
The price of Terra’s LUNA 2.0 token had previously dropped below $5, a drop of more than 60% in the last week. The Layer 1 token has dropped to a low of $4.50 and is currently sitting around $5.
Further selling pressure might push the price of LUNA 2.0 back to the low of $3.50 set on May 28. To have a chance of invalidating the negative forecast, Terra’s LUNA 2.0 price must retake $5.30 as support. If this happens, LUNA might rise to $6.70 or possibly $6.80.