- The renowned terra token, Terra Classic, has seen a marked rise in value earlier in the day.
- A high inflow of capital into the Terra Classic network has pushed the value of LUNC to a new high.
- LUNC token burning has increased, reaching a value of 3.08 billion tokens.
- The background of the token still keeps the community very skeptical about it and its growth.
The value of Terra Classic, the original chain of the now collapsed Terra (LUNA) token, is rising as a result of increased buying pressure. Furthermore, the enthusiasm for the coin seems to resist the continued and sustained volatility of the cryptocurrency market.
Indeed, LUNC, trading at $0.00012 after rising 21% on the last day, saw its peak value at $0.00013 in the early trading hours of August 26.
According to data from CoinMarketCap, a capital inflow that increased by nearly $137.7 million in just 24 hours contributed to the LUNC price surge.
LUNC Burn Accelerates
Despite being associated with fraudulent coins, the community has been engaged and supportive of LUNC despite predictions that it would disappear after the controversial crash. The goal of some campaigns has been to decrease the number of tokens.
We have the example of the last rally which coincided with LUNC tokens being burned reaching a new high. Using information from a LUNC burn tracker, it has been reported that 3.08 billion tokens have been burned.
“The total of LUNC burned amounts to 3.080 billion. The volume traded in the last 24 hours is 157 million dollars, 1.2% of that is 1.88 million dollars at these prices and the book we would have burned 14.6 billion.”
LUNC Burn Tracker
By reducing the overall supply of LUNC the scarcity will increase, leading to a possible price boost over time.
Community Impact
The latest rise in Terra’s value can be attributed to short squeeze initiatives by the community in order to recapture past gains. In turn, many analysts believe that LUNC will be able to take the course of meme coins such as Dogecoin.
It is also worth mentioning that the LUNC rally attempt is also tied to items such as the token retaining its listing on major cryptocurrency exchanges, despite a lack of significant use cases.
Additionally, LUNC’s bullish trends have been correlated with Terra founder Do Kwon’s recent interview, who continues to deny any wrongdoing in the crash. In the interview, he claimed that there was a mole within Terra’s organization.
So authorities continue to investigate Kwon, and prosecutors have asked the Ministry of Justice to issue a “notice of arrival” to the founder. At the time of writing, the token remains in positive numbers, trading at $0.00013 with a 5.51% rise in value.
