The price of Terra LUNA Classic (LUNC) keeps climbing in the midst of ongoing efforts to reinvigorate the firm and convince investors to come back. Since the 26th of August, LUNC has seen a gain of about 2,400%, achieving an all-time high price of $0.00031131.
The bears are showing signs of exhaustion, as LUNC has given up all of today’s gains and is now trading at the same level it was trading at the previous day’s close.
Despite this, since LUNC hit its all-time low of $0.000000999967 on May 13, the price of the supposedly “dead” coin has skyrocketed by an astonishing 27 thousand percent. Now, various market indicators suggest that the price of Terra LUNA Classic is continuing to grow.
The Return ofTerra LUNA LUNC
as a direct result of the UST de-peg, the Terra ecosystem collapsed in the month of May. During the period of widespread fear, the value of the stablecoin dropped as low as $0.006. Despite efforts to re-establish its peg price, the UST is still trading at a significant discount to $1, with a current price of $0.03458 as of the time of this writing.
An algorithmic technique was developed by UST in conjunction with the native LUNA cryptocurrency in order to achieve price stability. Since it lost its anchor, the entire Terra ecosystem has been plagued by allegations that it was a hoax from the very beginning and that its founder, Do Kwon, was behind it.
Following the theft of billions of dollars and the subsequent investigation by regulatory authorities, the community was given the opportunity to build and govern LUNA Classic, which was then relaunched. However, as a result of the scandals, many potential investors continue to be wary, particularly those who were negatively affected by the incident in the past.
Despite this, it appears that the release of new features is attracting investors, as seen by the meteoric increase of the LUNA Classic since the middle of August. According to a statement made by crypto analyst Miles Deutscher, LUNA Classic illustrates that large returns are possible even when the market is performing poorly.
What Comes After This?
At the core of this revival is a benevolent new staking system that was activated on August 27. At the beginning of operations, the ratio of staked coins to total coins was 2.6%. However, the percentage of people taking risks is growing. According to data provided by @LuncStaking Bot, the current ratio of 7.5% has nearly quadrupled in little than two weeks’ time.
The rewards on staking are currently at 37% per year, which is significantly more than Cardano’s predicted rate of 5%. On the other hand, excessive manufacturing was a factor that led to the destruction of the initial habitat of Terra.
In addition to the existing burn mechanism, which has already removed approximately 3 billion tokens from circulation, Deutscher has announced a new burning mechanism for token swaps that will occur at a rate of 1.2% of the total number of transactions.
He continued by saying that significant cryptocurrency exchanges such as Binance and Kucoin are expected to handle the token swap burn, which will go live on September 12.