The Luna Classic (LUNC) token shows rapid growth. The asset grew by 16,71% from $0.0001729 to $0.0002018. Moreover, such coins of related projects as Terra (LUNA) and even the sadly known TerraClassicUSD (USTC) stablecoin due to its tying to the dollar increased in value. We looked into the reasons for the rise and found out how long it will continue.
Like many cryptocurrencies, Luna Classic began its active growth in early 2023 on the background of news about the US inflation decrease (from 7,1% to 6,5%). Since then, the asset has only been growing in value, gaining 18,8% in January (from $0.0001451 to $0.0001725).
The beginning of February was also very successful for LUNC. This was mainly due to the Fed’s announcement of a rate hike (from 4,5% to 4,75%). Most of the market participants predicted such an outcome, which caused almost all assets to go in the gains. As for Luna Classic, after the news, the asset grew from $0.0001658 to $0.0001736. (+4,7%).
However, the main growth of LUNC probably has no relation to the overall market situation. On February 2, it became known that Binance removed the warning label a sign that digital asset prices are subject to high market risk and price volatility from the USTC stablecoin, which caused Terra and their native token LUNC to collapse in May 2022.
After the news broke, USTC gained 14,91% in less than 24 hours (from $0.02968 to $0.03078), which didn’t escape the eyes of the asset’s community. In this regard, many of its members voted for the proposal to re-tie the stablecoin to the native coin.
Recall that after the USTC collapse, Terra founder Do Kwon and part of the team decided to develop a new blockchain based on Terra, called Terra 2.0, with the native coin LUNA. The remaining developers continued to work on the old project, which became known as Terra Classic. The connection between the projects remained, and then, probably, when the value of one coin goes up, others go up.
LUNC, LUNA, and USTC current prices
After the news of the removal of the warning label and the community’s calls to re-tie LUNC to USTC, all three coins showed growth. In the last 24 hours:
- TerraClassic USD (USTC) rose 53,78%, from $0.02579 to $0.03966. The historical high was $1.0423 (the difference from the current value is ~96,19%).
- Terra Classic (LUNC) rose 16,4%, from $0.0001738 to $0.0002023. The historical high was $116.13 (the difference from the current price is ~100%).
- Terra Luna Classic
- Price $0.00012
- Market Cap
- Terra 2.0 (LUNA) was up 4,9%, from $2.1735 to $2.28. The historical high was $17.8 (difference from the current value of ~87,19%).
- Price $1.28
- Market Cap
At its peak, Luna Classic was worth $116.13. After the crash, its value fell to $0.00007061, that is, by 99,9999391975%. If we imagine that someone had only one coin in their portfolio, then after the crash, the investor would have $0.00007060994 left in their wallet.
From the fall until the current time, the value of the token has risen to $0.000202327 (+65,1%). Thus, an investor with one LUNC had $0.000116577 in his wallet.
However, for the investor to get back the full amount invested, LUNC must grow by another 99616562,4%.
How do LUNC, USTC, and LUNA trade on different exchanges?
The most profitable exchange to buy Luna Classic on is Bitfinex in the pair LUNC/USDT. There the coin trades at $0.00018294.
The highest trading volumes on Binance. During the last 24 hours $161,479,147 (+31,19%) in the LUNC/BUSD pair. The asset is worth $0.00019497 on the exchange.
According to CoinGecko, the most profitable exchange to buy TerraClassicUSD is Kraken in a pair USTC/USDC. There the coin trades at $0.03590302.
The highest trading volumes on Binance. During the last 24 hours $201,801,387 (+69,57%) in the USTC/BUSD pair. The asset is worth $0.03833278 on the exchange.
The most profitable exchange to buy the Terra 2.0 native token is FMFW.io in the pair LUNA/USDC. There the coin trades at $2.07.
The highest trading volumes on Bitrue. During the last 24 hours $66,839,759 (+27,9) in the LUNA/USDT pair. The asset is worth $2.19 on the exchange.
Luna Classic price prediction
Growth can also be helped by the strength of the community, which is likely to continue to insist on the return of the USTC tie to LUNC.
BREAKING: $LUNC Proposal 11324 to Re-Peg USTC from Duncan Day has passed! Bullish for $LUNC pic.twitter.com/7heV2GylKm
— WSB Trader Rocko (@traderrocko) February 2, 2023
🚨🚨🚨$USTC is up over 45% today! 🚀
The $LUNC community is super bullish on the repeg 🔥🔥🔥
Retweet to spread the word! pic.twitter.com/EdPbSwt0dY
— Asobs (@Asobs_CNG) February 3, 2023
Also, the value of the asset may increase if the project team continues to burn tokens. It is a mechanism that permanently withdraws a certain amount of coins from circulation. There are fewer of them on the market, and where there is less supply, there is more demand, causing the price to rise.
After the Terra crash, the team immediately burned 50% of the LUNC tokens, which was able to slow the decline of the asset. If the coins continue to be burned, this too could affect the rise in the value of the coin.
However, it is impossible to say when this will happen or if it will happen at all.
What could go wrong?
The Binance blog says that plans to bring back the tie may not be implemented. This is due to the fact that the algorithmic mechanism allegedly will not work on the collapsed algorithmically unstable stablecoin.
“Instead, there should be enough liquidity to tie the stablecoin, while in every other case, it creates additional selling pressure on Terra Luna Classic,” the blog say.
What do you think LUNC’s chances of revival are? Will the coin be tied to Stablecoin again? Share your opinions in the comments.