Is Luna Classic worth holding?

This note was written first on March 13th, here is a performance update on September 11th

Here is the performance of Luna Classic, Shiba Inu and Terra Luna 2.0 since March 13th

  • Terra Luna Classic: -55.5%
  • Shiba Inu: -35.1%
  • Terra Luna 2.0: -72.2%

Read the article as it was written on March 13th

Over the last 9 months, Luna Classic holders and a band of tech-minded folks have fought valiantly to keep Luna Classic alive. Between June 1st and September 8th of 2022, Luna Classic Price rose from $0.000106 to $0.0005839 (a growth of more than 400%). This was prior to implementing the on-chain tax. However, between September 8th and December 21st of 2022, Lunc Price fell from $0.0005839 to $0.0001309. Luna Classic has traded between $0.00012 and $0.000204 in the period after December 21st, 2022, and March 13, 2023.

Let us look at how other Cosmos-based Blockchains performed between December 21st and March 13th

  • Luna Classic: -15.0%
  • Binance: +21.8%
  • Cronos: +17.2%
  • OKC Token: -14.8%
  • Osmosis: +19.0%
  • Fetch.Ai: +296.5%
  • Luna 2.0: +5.0%
  • ThorChain: +1.8%
  • Cosmos: +20.3%

How did other major cryptocurrencies perform during this period?

  • Bitcoin: +33.1%
  • Ethereum: +32.0%
  • XRP: +5.8%
  • Dogecoin: -1.7%
  • Matic: +46.3%
  • Cardano: +32.9%
  • Solana: +92.3%
  • Polkadot: +32.5%
  • Shib: +30.2%

Excluding Fetch.Ai, the average Cosmos Blockchain coin underperformed the large Market Cap cryptocurrencies during this period. Typically, one would assume larger market cap cryptocurrencies would underperform mid-size market cap cryptocurrencies (Like the ones of the cosmos blockchain) but that hasn’t happened. There are arguments of course that Cosmos and Atom are likely to perform well and that makes sense but the same cannot be said of the other blockchains using Cosmos Tendermint.

So irrespective of execution, Luna Classic begins with a disadvantage which is the blockchain itself. The second issue is the number of Holders, let us look at that closely.

  • Binance: 2 Million
  • Cronos: 1 Million
  • Fetch.Ai: 40k
  • Luna Classic: 13k

Luna Classic may be traded by a very large number of people but the number of holders is small. Shiba Inu, another community-driven Token has about $1.3 Million holders.

Lastly, let us look at social media buzz.

The Lunc Buzz on social media is quite strong but that too is just 1/3rd of Shiba Inu. It must be added that despite the small number of holders, Luna Classic has 3 times the buzz compared to Cronos and twice that of Fetch.

Is Luna Classic Worth Holding?

So, let us compile the data we have

  • Luna Classic has underperformed other cosmos-based Tokens
  • Cosmos based Tokens have underperformed the larger market-cap cryptocurrencies
  • Luna Classic does not have too many holders though a very large number of users may be trading the cryptocurrency
  • While Luna trails tokens like Shiba Inu on holders and buzz, it has a very strong buzz compared to other Cosmos coins

What this tells us is that once the Technology upgrades are complete, numerous Dapps are likely to consider Luna Classic just to ride on the buzz that comes from Luna Classic. This is likely to translate to superior performance compared to other Cosmos coins but unlikely to outperform other community coins like Shiba Inu which will launch Shibarium in the next few days.

Luna Classic is likely to be a valuable Token once all the tech upgrades are complete, until then it is unlikely to outperform the broader market by much. So is worth holding before the Tech Upgrades are complete? Probably Not.

Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Index or Individual Stocks. Please consult a registered investment advisor to guide you on your financial decisions. 

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