Terra LUNA Classic (LUNC) continues to rise amid attempts to revitalize the business and entice investors to return. Since August 26, LUNC has increased by about 2,400%, reaching a high of $0.00031131.
Bull weariness has already set in, with LUNC giving up all of today’s gains and retreating to the previous day’s closing.
Nonetheless, since LUNC’s all-time low of $0.000000999967 on May 13, the formerly “dead” coin has risen by an incredible 27,000%. Now market indicators say that Terra LUNA Classic continues to rise.
Following the UST de-peg, the Terra ecosystem disintegrated in May. During the panic, the stablecoin fell as low as $0.006. Despite efforts to re-establish its peg price, UST remains substantially below $1, trading at $0.03458 at the time of writing.
To achieve price stability, UST collaborated with the native LUNA token in an algorithmic method. Since losing its peg, the entire Terra ecosystem has been dogged by accusations that it was a sham from the start, organized by creator Do Kwon.
With billions of dollars stolen and regulators on the prowl, the development and control were turned over to the community and relaunched as LUNA Classic. However, given the scandals, many investors remain hesitant, particularly those who were previously stung by the incident.
Despite this, the introduction of new features appears to be attracting investors, as indicated by the LUNA Classic’s meteoric ascent since mid-August. Miles Deutscher, a crypto analyst, stated that LUNA Classic demonstrates that massive profits are feasible even during a bad market.
What Is Next?
A generous staking system, which went live on August 27, is at the heart of this resurrection. On debut, the staking ratio was 2.6% of the total supply. However, the staking ratio is increasing. The current ratio, at 7.5%, has nearly quadrupled in less than two weeks, according to @LuncStaking Bot.
Staking returns are now at 37% per year, which is much more than Cardano’s estimated 5% rate. However, excessive production contributed to the downfall of the original Terra environment.
In addition to the existing burn mechanism, which has removed almost 3 billion tokens from circulation, Deutscher announced a new burning mechanism for token swaps at a rate of 1.2% of transaction volume.
He went on to say that prominent exchanges including Binance and Kucoin are expected to facilitate the token swap burn, which will go live on September 12.
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