Before crashing, $LUNC had a $40B market cap and just 340M tokens in circulation, trading near $117.65. Then the supply ballooned, the market cap collapsed—and here’s why recovering from that is nearly impossible.

Today, LUNC’s market cap is just $322.4 million, down over 99.20%.

The reason? When UST (its algorithmic stablecoin) lost its peg, the protocol automatically started printing more LUNA tokens to try and fix it. This caused the supply to skyrocket into the trillions, and as supply increased, the price dropped drastically. The mechanism was designed to protect UST, but it ended up destroying LUNA's value instead.

In simple terms: the system flooded the market with tokens trying to save something else—and that broke everything.

To fully recover, #LUNC would need a market cap of $40 billion and a circulating supply of less than 500 million—but realistically, that’s nearly impossible. Even if LUNC somehow reached a $1 trillion market cap and burned its supply down to 2.5 trillion tokens, the price would only touch around $0.40, which is just 40% of its previous high.

So, when people claim LUNC will recover fully, those are just empty promises. To regain its former value, either the market cap must rise to extreme levels in the trillions, or the token supply must be drastically reduced—and neither scenario is likely in the near future.

Burning tokens is not a quick fix. It would require billions, even trillions of tokens to be destroyed, and an enormous inflow of capital into LUNC to restore its lost value.

So instead of relying on hype or unrealistic expectations, focus on facts and real data. The reality is much farther from what many choose to believe.