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Terra Classic Price Keeps Pumping Higher – LUNC up 80%

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Source: Adobe Stock

Terra Classic (LUNC) appears to be making a comeback following its apparent collapse in early May 2022. One of the year’s most impressive comebacks is taking shape around the token. LUNC has increased by 37,000% ever since it gained its bottom following the Terra collapse. 

LUNC/USDT Price Chart – Souce: Tradingview

The 1.2% token burn tax on all transactions significantly contributes to this exponential growth. This project is working on making LUNC a deflationary currency as its economy improves.

Terra Classic Price & Tokenomics

Terra Classic’s current price is $0.000517, with a 24-hour trading volume of $3.7 billion. Terra Luna Classic opened the day at $0.0004057 after reaching a high of $0.0004500 and a low of $0.0004003.

CoinMarketCap now ranks #26 with a live market cap of $3.1 billion. It has a total circulating supply of 6,151,072,613,161 LUNC coins.

Terra Classic has increased by 8.19% in the previous 24 hours. On the weekly charts, the tokens’ performance is even more spectacular, as LUNC rocketed over 80% in the last seven days.

The v22 Update

The v22 update is most likely what enabled LUNC to achieve triple-digit growth. Following the enhancement, investors may reinvest in the network. According to Staking Rewards, LUNC rewards up to 37.8%, which is very appealing to investors. However, unsustainable interest rates remain a concern, particularly in times of limited liquidity. To increase scarcity, developers included token burning.

Source: LUNC Burner

According to the LUNC Burner website, more than 3 billion LUNC tokens have been removed from circulation. The operation will contribute to reducing the amount already in circulation. However, the token’s value is increasing. Binance, the leading cryptocurrency exchange, announced on August 26 that it would assist the network update by suspending deposits and withdrawals until the upgrade was completed. 

According to Binance’s announcement, it will not affect LUNC trading. However, the community has long desired this effort. As a result, the increase in trading volume and price indicate a more positive overall sentiment.

Changing the Tax Setting

Terra Classic is on a bullish run, following the suggestion to alter the Terra Luna Classic tax setting. The idea is to collect taxes and burn them to fund on-chain operations. The tax will not be applied to off-chain activity, such as trading on CEXs. The concept was proposed by Edward Kim, an associate professor of computer science at Drexel University.

In June, the first full proposal for this transaction tax was released. However, it did not specify how this would work or what coding would need to be added to the network’s backbone for it to function.

A community member, Edward Kim, recently offered a more comprehensive plan on Terra Classic’s official forum, which included additional information about how the tax will work. 

According to Kim’s plan, if the tax is implemented, this could be a critical time for Terra’s LUNC token, with the token’s value reaching $1. Given this, it is easy to see why the LUNC/USD has performed so well in recent weeks.

Furthermore, Binance announced in a post on September 2 that it will no longer accept LUNC (Shuttle) deposits and withdrawals via the Ethereum network (ERC20) and USTC (Shuttle). It will also halt transactions on the Polygon network, the Ethereum network, and the BNB Smart Chain (BEP20). They will temporarily suspend withdrawals and deposits on September 7, 2022.

Binance is a centralized exchange, so its decision to stop accepting deposits and withdrawals has no bearing on the taxing and burning strategy. This is most likely why investors were unconcerned by the exchange’s decision.