The altcoin project, which was considered dead by many analysts after its collapse in May 2022, increased its value by 12 times. With its recent gains, the cryptocurrency has become the 24th largest digital asset by market cap. Now, the project continues to delight its investors by announcing new news.
The so-called dead altcoin increased its value 12 times
Terra Classic (LUNC) is on the rise after the recent token burns created hype. The altcoin project has rallied after its extremely low levels in June. Thus, it has managed to increase its value 10 times since then. The token made another big rise two days ago, increasing its value by 50%. It remains unclear when the rise of the new LUNA will stop. However, LUNC also surpassed the market cap of LUNA 2.0 led by Do Kwon.
Terra Classic makes a big difference to Terra (LUNA)’s $258 million valuation. Accordingly, LUNC has a current market capitalization of $3.3 billion, which is approximately 12 times higher than LUNA. The community had major revitalization plans for the Terra Classic chain, which was previously described as “dead”. These plans went into effect. The token was $0.000048 on June 8. It is currently trading at $0.00051 and has dropped a zero from its price.
Staked LUNC rate increases
According to LuncStaking_Bot, 8.8% of the LUNC supply is currently staked. This is much higher than on August 27, when only 2.6% of the LUNC supply was staked. It looks like LUNC staking has been increasing steadily since the feature went live. This is highly likely to have an impact on the recent price increase.
Altcoin delights its investors with its first listing announcement
LUNC has already been attracting the attention of the crypto community lately with its rising price. In addition, the news of the burning had a great role in the recognition of the community. Now the altcoin has shared the announcement of being listed on a decentralized exchange (DEX) for the first time. The news that made its investors smile came from Saitama Pro. DEX now supports LUNA Classic.
The latest listing shows increasing interest in LUNC, which continues to rally with bullish sentiment. Users of the SaitaPro exchange now have the advantage of trading the asset within the app. This means that LUNC has access to more investors. As we have reported as Kriptokoin.com, listings are extremely important for the adoption of altcoin projects.
How did the LUNA Classic come about?
The Terra ecosystem boom came about when the UST stablecoin lost its peg to the dollar in May. The UST was algorithmically pegged to the dollar based on supply and demand. Dropping UST below $1 encouraged users to print LUNA and burn UST. This lowered the value of the UST significantly below the dollar’s value. Thus, large quantities of LUNA were minted, the supply increased and the token price further decreased.
The result was a massive outflow of capital leaving the ecosystem, followed by a liquidity squeeze that affected the rest of the market. Since then, numerous fraud allegations have been leveled against Terra founder Do Kwon and his senior team. The community accepted Do Kwon’s proposal to fork the chain and create Terra LUNA. The original chain has been renamed Terra Classic (LUNC). However, the development and governance of the altcoin project has moved from the Terra team to the community.
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