How is Terra Luna cryptocurrency? How does this one really get to one dollar? So, how is this crypto? Is it possible to get to one dollar? What needs to happen for Terra Luna to get to one dollar? Is it even possible?
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Just to give you guys a bit of analysis right now. So, what is important to understand is the price of Terra Luna. It is sitting around the 0.0002 level, so to get to one dollar that’s going to be a lot of X’s. So, it’s going to have to jump up in price quite a lot to get to one dollar, and is it realistic that Terra Luna can get to one dollar right now? To understand this, we need to take a bit of a step back. We need to go through this process of understanding how Terra Luna even get to this price. Then we’re going to do some reverse engineering to give you an assessment of the situation. If you are new to Terra Luna, if you have a look at this price chart you guys can see here this cryptocurrency basically came from nothing from about 30 cents back in 2020. It had its first moon mission up to about 17 and it went all the way up to about 115 116. Then recently it has actually dropped down to pretty much zero. So, zero level right here, so multiple zeros and then a few numbers at the end. So, the value of each lunar coin right now is very low. But, during this descent what is important to understand about crypto is when it started to go down, there started to be a lot more minting of the supply of Terra Luna cryptocurrencies.
The supply of Terra Luna actually went up quite a lot during this process and this is going to help us make an assessment of whether it can potentially go to one dollar or not. If we do take a look at the market caps of cryptocurrencies right now. You can see right now that the biggest crypto on the charts is Bitcoin. Its market cap right now is 566 billion dollars. Ethereum is sitting at around 245 billion dollars and that is sitting at around 75 billion. They’re the biggest cryptos right now on the market which is quite a significant market cap. But what’s important here is that Bitcoin is the biggest. It’s got a market cap of 566 billion dollars currently which is going to help us explain how potentially Terra Luna can get to that one-dollar level. So, to get to one dollar Terra Luna what would really need to happen in this situation is we need to understand the market cap equations. Market cap is simply going to be the circulating supply and that is going to be timed by the current price of the crypto. So, the current price of the crypto time circulating supply is going to give us our market cap predictions. Bitcoin has a market cap of 566 billion, so Terra Luna the cryptocurrency that would need to happen in this situation is that first of all.
We need to figure out a reasonable market cap for this crypto so what is the market cap of terra luna we have to take into account a bunch of factors. So, I think for Terra Luna to get to one dollar what would need to happen is Do Kwon will need to come up with a plan. This plan would need to basically resurrect and recover the ecosystem for Terra Luna. He would need to get all those projects that have been impacted by Terra Luna on the terry chain back onboard the community would need to stay strong with Terra Luna and I would basically need to rebuild. He’ll need to rebuild his algorithm, his protocol and make sure it is future proof and with that the market cap of Terra Luna right now has gone down quite a lot. So, let’s estimate, for example, the market cap given all those changes Do Kwon makes to Terra Luna. Let’s say the market cap of Luna goes to around 2 billion.
We get some positive news for at Terra Luna the market cap goes to 2 billion. We know what our price wants to be, so in this equation, our price is going to be one dollar. Really it comes down to a question of circulating supply and the circulating supply in this equation. It would need to equal again 2 billion, so that is what would need to happen with Terra Luna the supply would need to be significantly reduced. What does that actually mean for Terra Luna to sum it up to make it really easy for you to understand? What’s going to need to happen? Is there need to be a significant burn off the crypto? So, there needs to be a lot of burning of Terra Luna so what would need to happen? You can see the flames right here is the exact reverse process of what happened to Terra Luna when it started to go down in price. So, when Terra Luna went down in price.
There was a lot of minting of the cryptocurrency so the reverse of that needs to really happen there needs to be a lot of burning of the cryptocurrency CZ of Binance has basically hinted at something very similar to that so over on Twitter. He said the quote he has said the last few days we tried hard to support the Terra community in my tweets. I am simply pointing out the potential issues from my understanding minting forking doesn’t create value buying back burning does, but requires funds that the project team may not have. So, it’s going to come down to funding the burns. So, it’s going to come down to burning up the crypto and how does Do Kwon go about burning up the crypto. So, that is the million-dollar question. So, I think realistically the analysis here is that potentially a one-dollar Luna could happen, but what would need to happen is a massive amount of burn. This is the million-dollar question: how does this burn happen, how does the value of Terra Luna get generated? Does it need massive amounts of funding?
We do know there is a Bitcoin on the side right now for Terra Luna, somewhere that thunder burn is that big enough to burn up a ton of this crypto. There are also some other strange things in crypto and I’m not going to rule out this equation as well. So, just to throw this into the mix. Our Meme coins also create value, so I want to prove to you that Meme coins can also create value. So, if we go to the price charts right now, you can see right here dogecoin has 11 billion dollars in market cap and the equation i was only talking about was 2 billion in market cap as well. So, again, coins can also generate value somehow in cryptocurrency. If Luna does turn into a Meme coin and, of course. I want to keep things extra realistic with you, so this is a really high-risk high reward cryptocurrency and the price of Luna could also potentially go further down as well so you always have to factor that in, you’re in a high reward high-risk environment. There’s a lot of uncertainty in crypto that is where the risk comes in right now with Luna the cryptocurrency but I wanted to explain one key point that I think is just my opinion. So, I think for Luna to sum it up what needs to happen is a significant amount of burning for the cryptocurrency needs to happen. But, that is my opinion. This whole circulating supply needs to get reduced somehow and I think that is the pathway for Luna to potentially get up to one dollar.
This article is a transcription of a video made by Crypto ZEUS
Original video: https://youtu.be/3mljsOghfus
