Since the time bears have shadowed the LUNA price action, the currency’s circulating supply is rising continuously. This increase in the circulating supply is mainly due to people redeeming their UST staking for digital assets.
Reflecting the huge amount of tokens being dumped into the market, the price of LUNA declined. At the time of writing, LUNA is changing hands at $0.0001707 with a decrease of 11.33% over the last 24hrs.
It’s been just a few days that Terra’s (LUNA) price has tumbled down below $1, yet the currency is just short of four zero to hit $1. However, the one thing that is hovering around investors’ minds is will the LUNA price ever make it to $1 again in a meaningful way.
Factors For LUNA To Hit $1
In order to consider LUNA price hitting $1, the first thing to keep an eye on is the currency’s circulating supply. The circulating supply of LUNA has increased from over 300 million to almost 7 trillion tokens.
Currently, the total circulating supply of the digital asset has raised by more than 1,000,000% hitting a little over 6.9 trillion tokens. For LUNA to get to $1, it would mean that the market cap would have to touch $7 trillion, and that can happen only if the current force stays stable. This presently looks unachievable given that the whole crypto market cap at its lowest was at $3 trillion.
However, if LUNA had to get back to its earlier market cap, the currency has to reach the trading target at $0.005. The next to consider is investor sentiment. Many investors and traders have lost millions of dollars in the crash. Hence, if there is any significant rise in the token’s price, the investor’s faith in the currency could be restored.
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Source: https://coinpedia.org/altcoin/with-an-increased-luna-supply-will-terra-luna-price-reclaim-1/