Terra Classic (LUNC) gained 18% in 24 hours days after Binance removed the warningon the Terra ecosystem.
This recent development from the largest cryptocurrency trading platform greatly provoked more investors to buy into the LUNC and USTC tokens. LUNC and USDT are products of Terra ecosystem.
It would be recalled that following the fall of the Terra ecosystem in May 2022, there was a massive decline in the prices of Terra Classic (LUNC) and the supposed algorithmic stablecoin – TerraClassicUSD (USTC). These assets thereafter became risky for both retail and institutional investors alike.
To protect investors, the world’s largest cryptocurrency exchange, Binance attached a warning label on both tokens leading to more downward pressure.
Investors King could recall that the creator of Terra Blockchain, Do Kwon also abandoned the project after being charged and arrested by governments from different countries.
However, the Lunc coin increased by 18% on Thursday, riding on the Binance news and the new momentum in the entire cryptocurrency market.
A check at TradingView shows that Lunc crossed the $0.0002 mark before retracing to $0.00019 at the time of writing this report.
Going forward, a number of fundamentals which could propel a new upswing for Lunc include a recent proposal to re-peg the price of USTC (sister stable coin to $1).
Similarly, Lunc burning is likely to begin speeding up again.
As of writing, around 38.5 billion LUNC have been burned to date, out of a total circulating supply of 6.87 trillion while the Terra Luna Classic Community is gearing up efforts to enhance the utility of the network.
The Terra Luna Classic Community has passed a Proposal to upgrade the blockchain from v1.0.4 to v1.0.5 and introduce codes to make future upgrades possible. It will also bring back the Binance LUNC burn mechanism.
Without much ado, these developments point towards a rising LUNC price over the medium-to-long term.