Terra Classic token suddenly surges 31%: three reasons for growth, future forecast, and a chance to make 158x on LUNC

Terra Classic (LUNC) is gaining momentum again. Following the news of the plans to update the blockchain, the asset rose 31% from $0.0000895 to $0.0001008 during the day and continues to grow strongly. Read more below about the upcoming changes to the notorious cryptocurrency in an attempt to regain its former power and what will happen to the price next.

Moon rally: Why is LUNC rising?

The last time LUNC reached similar numbers was a month ago, having spent the whole of May in decline. Now, if the growth of the asset continues, there is every chance to beat the two-month high. However, we should first understand why cryptocurrency started to grow.

There may be several reasons for that. Here are some of them that most likely influenced the current bull run:

First, Project Manager LuncBurnArmy revealed plans to update version 2.1.0 of the blockchain. The event is scheduled for June 14. So, according to the announcement, the project team is aiming to bring Terra Classic in line with other blockchains, such as Terra 2.0 and various Cosmos chains.

So, if all goes well, the testnet update will allow the development team to detect and fix any potential problems, even before components are implemented in the mainnet.

As for the benefits, after the upgrade, all validators will have to set their commissions to at least 5%. This is done to eliminate unfair competition among validators by reducing rates. Thus, all players will be equal in the network, and the platform will be more secure and reliable.

The second possible reason for LUNC’s rise could be due to ongoing rumors about the return of the asset’s USTC peg. Recall that previously both cryptocurrencies were tied in such a way that to create each new stablecoin, it was required to burn an equal amount of Luna Classic’s $1 value, and vice versa. However, in May 2022, USTC lost its peg to the dollar, causing the stablecoin and LUNC to collapse by nearly 100%.

Now, however, it appears that the peg may return. We have reported on this in the past. The Layer-1 Joint Task Force (L1JTF) has already proposed bringing back the USTC peg, which could help revive it in the long run. It is assumed that the test for the return of the peg may begin as early as Q3. So far, the stablecoin is trading at $0.01432, which is far from the target.

You have not selected any currency to display

The third reason concerns LUNC stacking. So, in May, trader and researcher Rexyz posted the data that stacking on Terra Classic had reached new heights and was approaching the 1T coin mark. Now, a month later, it seems that the bar could be reached.

Besides, we should not forget that Binance, as well as DFLunc, continue to actively burn LUNC, which can also continue to influence the growth of the asset’s value, though insignificantly. Binance alone could burn up to 2.3T LUNC in the near future.

The way up: LUNC’s current price

The reasons described above allowed the asset to break into the tops on various platforms. For example, LUNC got into Google Trends, ranked first in terms of growth among the top 100 cryptocurrencies by market capitalization on CoinMarketCap, and was mentioned in more than 4 million tweets.

Such publicity may have also influenced the growth of the asset. Thus, LUNC has risen 31,28% in the last 24 hours and is trading at $0.00009998 as of this writing.

You have not selected any currency to display

LUNC is still a long way from the all-time high of May 2022. Recall that at that time the asset could be bought for $119.18, after which it collapsed by almost 100%. However, there is some good news for those who bought LUNC at the bottom after the collapse. The all-time low was fixed at $0.00001675, so LUNC has risen 480,63% since then.

As for the price, at the time of writing, LUNC is the cheapest traded on the Gate.io exchange, paired with USDT at $0.00009946. However, the largest trading volume is on the Binance exchange, which has already exceeded $140K. In general, for the last day, LUNC trading volume increased by more than 600% compared to the previous day and is $437,222,657K.

As we wrote above, despite the bond between blockchains, which may soon be strengthened as part of achieving parity, the growth of LUNC did not affect the growth of USTC. The same cannot be said about the Terra 2.0 project and the native token LUNA, which was born after Terra Labs co-founder Do Kwon left the original project and launched a new blockchain.

So, as of this writing, LUNA is trading at $0.8717, up 12,25% from a day ago. One cannot say for sure that this is due to the success of Luna Classic, but one cannot deny it either. Also, the trading volume increased, reaching $252,972,060 (+476,25% in a day).

You have not selected any currency to display

What’s next? Will LUNC continue to grow?

Given that the vote to update won’t take place until June 7 and the process itself is set for June 14, there’s a chance that a community fueled by such news will hold LUNC at its current value or even help it rise more.

However, the only way to know what will happen next is to wait and keep an eye on the token. Given its past, many investors still view the project with caution. In the meantime, the logical and working method, which somehow but steadily becomes the reason for LUNC’s growth, is to burn the token. So, according to various estimates, if 92% of all tokens are burned (the current circulating supply is 5,857,830,047,884), the value of the asset could rise to $100. But it can take a very long time.

The deal that will make you rich (but it’s not certain)

Meanwhile, it is possible to make money on LUNC without waiting for the asset to regain its former strength. Different traders make deals, which sometimes bring them even more income. One of them was posted on TradingView by a specialist under the nickname Fiery Trading. As always, such things require careful analysis, plus this deal is for experienced traders, so be careful.

The essence of the trade is that the continuous downward movement of LUNC has to end sometime, and probably, we are seeing the bottom right now. The asset has supposedly overcome the diagonal resistance, and in the short term, this could bring the bulls a profit.

“With a target at the current all-time high, we’re able to construct a trade with a mind-blowing risk-reward of over 185, which means that for every dollar you risk, you can potentially make 185x [the] amount if this trade will hit its target, without leverage! Entry placed at [the] previous 4H local top,” states Fiery Tranding.

For more details on how to make a deal, he explains in the video. We leave a link to it, but use it only at your own risk. Good luck!