Terra Classic (LUNC), the original cryptocurrency of the collapsed Terra (LUNA) ecosystem, has been experiencing a price boom over the last week, climbing more than 27%. The rally can be attributed to a series of continuous developments within the Terra community to boost the value of the asset.
Reasons for LUNC Rally
According to CoinMarketCap, LUNC has climbed nearly 27% over the past seven days with its market cap marching towards $1 billion. After falling to its August low of $0.0001269 last week, Terra Classic (LUNA) has been on a gaining spree. The recent rally can be chalked up to the community’s efforts to bolster the project, as seen in burn efforts and recent proposals.
Of late, the Terra network has witnessed an increased burning of LUNC coins, in an attempt to strengthen the price of the cryptocurrencie. The total LUNC burned has reached over 36.5 billion LUNC coins. The community, excluding Binance, burned over 80 million LUNC coins in December.
Furthemore, the Terra community has also recently voted on a proposal reversing a decision to transfer 50% of all LUNC burns to a community development pool. Last week, LUNC soared nearly 7% following the news of Binance’s completion of its second round of airdrop distribution to Terra Classic (LUNC) and Terra ClassicUSD (USTC) holders. Terra Classic (LUNC) may observe another spike in the coming year as Binance will distribute the remaining Terra (LUNA) in June 2023 to the eligible users who held Terra Classic (LUNC).
📈Why #LUNC is up 13% in the last 24 hours?
👉The community is voting on a proposal that would reverse a decision to transfer 50% of all #LUNC burns to a community development pool.
👉The network has witnessed accelerated #burning of LUNC in a bid to give the asset utility pic.twitter.com/cJdBrQNetG
— Satoshi Club (@esatoshiclub) December 27, 2022
Other factors that may have pushed LUNC are the rumors of Coinbase listing Terra Classic and several important decisions that have been taken by the community such as passing Proposal 11111 to repeal Proposal 10983 to influence LUNC price.
JUST IN: @coinbase has just authorized the purchase of 245 million dollars in $LUNC. Internal source says that on the 3rd to announce publicly #listing more off-chain burns. 🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥#Coinbase ✨✨✨✨✨#LUNCBURN #LUNCARMY #LUNC
— LUNC MOON (@LuncMoOon) December 22, 2022
LUNC has been Dropping in the past 24 hours
However, over the past 24 hours, LUNC has plummeted owing to Binance temporarily suspending the burning of Terra Classic (LUNC) trading fees until March 2023. At the time of writing, Terra Clasic is down 3.55% in the last 24 hours to trade at $0.00016. The move comes following the developments related to Proposal 10983 and Proposal 11111 to fund the commodity pool.
Moreover, Binance will burn 50% of LUNC spot and margin trading fees instead of 100%. The crypto exchange has further clarified that they are making changes to its LUNC burn mechanism to continue to support the Terra Classic community in decreasing the LUNC tokens supply.
In addition, Binance has urged Terra Classic core developer Edward Kim to create a new burn wallet in order to prevent the re-minting of LUNC tokens and whitelisting Binance’s wallets to prevent tax when transferring between these wallets.
