Market data for Bitcoin and other cryptocurrencies may indicate the effects of increasing supply inflation. More demand is needed to maintain the value of a token, and it can be affected by supply inflation. These two factors can influence the price of a cryptocurrency, including Terra Classic.
According to CoinMarketCap, the market value of Terra Classic (LUNC) reached its all-time high of $40.99 billion on April 4, 2022. During this period, the token’s price skyrocketed to $119.18 the next day. Analysts note that approximately 343.933 million LUNC were in circulation during this time. Let’s examine the inflation and economic effects of LUNC.
At the time of writing, the circulating supply of Terra Classic was 5.80 trillion LUNC. This can result in inflation of over 1,000,000% for more than 5.80 trillion tokens. Price predictions can also demonstrate the significant economic effects of this massive inflation.
If Terra Classic reaches its highest speculative demand with a market value of $40.99 billion, LUNC may trade at a lower price compared to its all-time high. Considering the circulating supply as of December 1, it is estimated that each token of Terra Classic could be priced at $0.00706. This represents a loss of $119.18 (99.999%) compared to the previous price.
However, this signifies a potential increase of 4,800% from the current price of $0.0001442. It should be noted that for the prediction to come true, there needs to be the same demand as in 2022. There is no guarantee that this demand will be seen again, but it is possible for the demand to increase further in the coming years. In conclusion, Terra Classic (LUNC) has attracted attention by reaching its all-time high market value according to CoinMarketCap. However, with 5.80 trillion LUNC in circulation and over 1,000,000% supply inflation, it poses uncertainties for the token’s future price and economic effects, but also presents a potential opportunity for growth.