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LUNA2 is finally showing its moves, convincing investors about its robust future potential
Terra’s crash raised concerns around the world about the future of the crypto market. TerraUSD got debugged from its dollar status, bringing down the entire Terra ecosystem along with it. As a result, several investors were exposed to a higher level of volatility. The fall of the Terra ecosystem wiped out around 99% of its total value and more than 95% of the total amount of the investor wealth. It is quite uncommon for stablecoins to get depegged from their original values. Most new investors choose to invest in stablecoins due to their affordable values and minimized volatility. The fact that a stablecoin will fall, taking down the value of the entire crypto market is not only scary but also somehow demonstrates that no cryptocurrency can be trusted blindly. But finally, after an uncountable number of efforts by the developers and from Kwon, the co-founder of the company, LUNA2 was launched with hopes that it would revive the initial reputation of the protocol. Even though the LUNA2 protocol did not impress the investors, finally, it seems like the crypto is showcasing a much-awaited bullish performance.
Terra 2.0 Rises More than 70% within a period of 2 Days
Initially, to rescue investors from the devastating situation, Terra LUNA’s co-founder Do Kwon said that the crypto would be backed by reserves in the future in an attempt to steady the crypto by adjusting its complex pegging mechanism. After witnessing a series of tweets about recovery plans, investors concluded that re-inventing the LUNA2 protocol might not be the way to go. Investors had already lost most of their money and savings, hence, trusting once again in the crypto is a difficult task in itself. In fact, around the last week of May 2022, Terra collapsed by more than 70% within a period of 2 days. Before the launch, the firm announced that LUNA2 tokens were being airdropped to the holders of USTC and LUNC holders as a gesture to compensate for the loss. But the launch of LUNC and USTC was not as successful as the developers had hoped it would be. But currently, amid the vast crypto bloodbath, Terra has managed to rise from its ashes.
LUNA2’s recovery portrayed a surge in value in other major cryptocurrencies like Bitcoin and Ethereum within the same period. According to crypto experts, LUNA2 appears to be forming a ‘bear flag’ pattern, which is basically a bearish continuation chart that is automatically created when the price moves upwards.
Should you invest in LUNA2?
LUNA2’s depressing price momentum indicates that investors are much more cautious about investing in crypto assets. Earlier, LUNA was one of the best utility tokens because of the rapid adoption and growth of Terra in exchanges, but the rising volatility made things worse for Terra, and at a time when the crypto market was suffering continuously due to the falling values of Bitcoin and Ethereum. Investing in this volatile and risky asset is a totally different decision that might change from investor to investor. But it is quite clear that the crypto will surely make headway towards becoming one of the greatest cryptocurrencies in the world, once again.