New hope for Terra Classic (LUNC)? While part of the Terra ecosystem as well as its founder Do Kwon have migrated to the new Terra Luna blockchain, a community is holding on and continuing to develop on the old network. New initiatives mixing staking and burning have recently emerged, causing a colossal rise in LUNC. Is this a temporary surge or a long-term increase?
LUNC’s capitalization is skyrocketing
Terra Classic (LUNC) seems to be back in the spotlight with some investors after months of being out of the news. Indeed, while the general picture of crypto-currencies is in the red, LUNC is observing a rise in its price of around + 160% over the last 7 days.
With an increase of over 57% in the last 24 hours, LUNC is currently trading at $0.00025868. This is obviously a far cry from the high (ATH) of $119 reached on April 5, but is respectable in the medium term since its descent into the abyss.
LUNC’s market capitalization has also increased considerably. From $716 million as of August 25, it has exploded to $2.23 billion today.
Also, while some are now calling LUNC a scam token, others are still building on the old network and developing new initiatives. The beginning of a long-term rise?
What are the reasons for this rise?
Terra Classic, the blockchain that retained the original pre-fork code, passed into the hands of its community following its abandonment by founder Do Kwon, who has since migrated to Terra (LUNA), the new form that is completely independent of the old blockchain.
This community includes LUNC DAO, an organization to which it is now possible to delegate its LUNCs in order to support token burning.
The staking of LUNC tokens was made possible following the switch to the v22 version of the network on August 27. On the same day, 182 billion LUNC tokens had been staked by their holders, i.e. 2.6% of the total supply (number of tokens in circulation). Three days later, 402 billion LUNC tokens were placed in staking, i.e. about 6% of the supply.
According to the data of the LUNC Burner tool, currently more than 3 billion LUNC tokens have been completely removed from circulation following their burn.
So, as the Terra Classic community continues to prove its resilience and confidence in LUNC, will it be able to truly breathe new life into what was once one of the most capitalized cryptocurrencies on the market through its initiatives?