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One year after its epic crash the Terra Classic (LUNC) token roars back to life with 13% rise — bullrun is coming?

Andrew Zhoao

News editor

May 10, 2023 at 06:30

The Terra Classic (LUNC) token rose 13.63% in 24 hours, from 0.00008381 to 0.00009704 after updating the test network for voting on Terra Station [a web application to interact with Terra Core and other supported chains]. Project community members believe the asset has bottomed out and is now ready for another bull run, exactly one year after it completely collapsed.

Meanwhile, Binance continues to burn LUNC, which also affects its value. More on the update, what’s happening with Do Kwon now, and whether LUNC can reach its previous highs are discussed below.

Terra Classic v2.0.0: What is known about the update?

The network update was made possible by the Joint L1 Task Force, the Terra Classic development group. Thus, the testnet called Therebel-2 has been updated to Version 2.0.0. Basically, this means that parity exists between LUNC and Terra Classic.

In addition, the update is expected to allow builders of the Cosmos and Terra Luna 2.0 ecosystems to build on the Terra Classic Chain blockchain. If Twitter is to be believed, the update is scheduled for the end of May.

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Until then, the combined L1 task force will focus on the release of the Cosmos SDK v0.45.11 Columbus-5 core network update, which is scheduled for May 17.

According to a community member nicknamed Baby LUNC, in a practical sense, thanks to the update, all dApps present on the sister blockchain could also have a new home on Terra Classic, thus bringing new utility.

Back on top? LUNC’s current price

Judging by the chart on CoinMarketCap, LUNC did not immediately react to the network update but instead fell by almost 18% in two days. However, this in no way confused investors, who saw an increase in token trading activity on Binance. Thus, many believe that a token bottom is forming now.

Overall, this has not prevented LUNC from ranking second in value growth among the top 100 by market capitalization. So, at the time of writing, the token is trading at $0.00009142, up 7,69% from a day ago. The day’s peak was $0.00009704, indicating more than 13% growth.

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The engine behind LUNC’s growth right now is mostly that Binance burns a certain number of tokens each month, which leads to a significant decrease in token supply and, consequently, an increase in demand. One of the last times the company burned an asset worth about $150K (~1.5B LUNC).

“The larger crypto Twitter accounts are talking about the crash of LUNC on May 9th, 2022. All they are talking about is how it crashed, showing pictures of their shorts, etc. You know what they aren’t saying? That LUNC is still here and binance is burning it,” noticed ‘crypto hype man’ Mr. Diamondhandz1.

According to user Rx, the daily LUNC burn is now approaching 200M tokens, which means that in almost two months, about 1% of the total number of tokens will be burned. In total, there are about 5.8T coins in circulation right now.

However, the burning process could go faster. User Ninja Cat claims that if a 1,2% burning tax were applied to the entire volume of LUNC trades, about 6B coins could be burned per day alone. That’s 180B a month and 1,8T every ten months.

It is also important to note that along with the main token LUNC, growth is also observed in the stablecoin from Terra Classic called USTC. At the time of writing, the asset is trading at $0.01647, up 8,78% from a day ago. However, it is still far away from $1. The difference is about 98,43%.

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Recall that the latter is what caused the collapse of the entire ecosystem. Both tokens were tied up in such a way that an equal amount of Luna Classic had to be burned to create a new stablecoin. One USTC coin could be exchanged for one dollar’s worth of LUNC, and vice versa. Rumor has it that the pegging could be back in as little as two weeks.

In 2022, USTC lost its peg to the dollar, and with it, LUNC fell because of the peg. However, there is hope that the coin will be pegged to fiat again. We reported more about that here.

Will LUNC soon impress you? The token price prediction

Given the token’s past, we can’t be sure that it will reach its former highs in the near future. However, there is a possibility that LUNC has really started a bullish run. So, some users believe that the asset will at least reach the $0.1 bar and then only intend to sell.

Others, still believing in LUNC and believing that the asset is now forming the next bottom, are trying to buy more.

Meanwhile, while the project is developing, Terra Labs founder Do Kwon faces the longest prison sentence for financial crimes if extradited to South Korea. For example, local prosecutors say that if the businessman is charged with all offenses, he will go to jail for more than 40 years.

What do you think will happen to the project next? Do you believe that USTC and LUNC can reach $1 in the near future? Share your opinions in the comments.

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