LUNA Supply surges to 7 Trillion: can LUNA touch $1

Since the UST fiasco, the circulating supply of LUNA has steadily increased. This is primarily due to consumers exchanging their staked UST for the digital asset, causing its supply to skyrocket in such a short period of time.

As a result of the massive volume of tokens being thrown onto the market, the price of LUNA has dropped. Now that the dust has settled, the question remains as to where the asset’s price will finish up.

$1 for LUNA

Given that the price of LUNA was above $100 less than two weeks ago, it may be funny to speculate on whether the price can return to $1.

However, this is the situation since the digital asset is currently worth around four zeros less than a dollar, and even that looks charitable.

The question on investors’ minds right now is whether the price of the digital asset can ever return in any meaningful sense.

To truly determine whether LUNA can return to $1, the first item to consider is the digital asset’s circulating supply. It has grown from just over 300 million tokens in circulation to nearly 7 trillion at the time of writing in less than two weeks.

The price was trending at $100 when the supply was still above 300 million, implying that its market valuation was averaging around $33 billion at the time, depending on price variations.

According to reports, the total supply of digital assets has now increased by more than 1,000,000 percent to a little over 6.9 trillion tokens.

Can LUNA ever reach $1?

To reach $1, LUNA’s market cap would have to reach $7 trillion, and that’s assuming the existing supply remains unchanged.

Given that the whole crypto market cap peaked at $3 trillion, this is currently unachievable.

However, LUNA would have to be trading at $0.005 to reach its prior market cap before the meltdown. Since a market cap of $33 billion is still possible, it’s safe to argue that this is still within sight.

However, there is one factor to consider: investor sentiment. Hundreds of millions of dollars have been lost due to the token, and trust in it has been eroded. As a result, there are set-offs that rock the token price back down after every major price increase.

As a result, our analysis’ conclusion is that the price of LUNA could potentially grow back up to $0.005.

However, given present market conditions, this is unlikely to happen in the near future and is totally dependent on whether or not supply continues to expand.

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