After its apparent collapse in early May 2022, Terra Classic (LUNC) seems to be making a return. Around the world, one of the year’s most amazing comebacks is taking shape. LUNC has grown by 37,00% after hitting bottom after the fall of Terra.
LUNC/USDT Price Chart. Image: Tradingview
The token burn fee of 1.2% on all transactions adds considerably to this exponential growth. This initiative aims to make LUNC a deflationary currency as the nation’s economy improves.
Terra Classic Token Economics
The current price of Terra Classic is $0.000517, and its 24-hour trading volume is $3.7 billion. Terra Luna Classic began the trading day at $0.0004057, achieving a top of $0.0004500 and a low of $0.0004003.
With a current market cap of $3.1 billion, CoinMarketCap now ranks #26. There are a total of 6,151,072,613,161 LUNC coins in circulation.
Whales are buying $LUNC
Massive pump is coming #LUNC #LunaClassicHQ #LUNACLASSIC
💠💠💠💠💠💠💠💠💠💠💠💠💠💠💠💠 pic.twitter.com/ZAEwLDyFAL
— LUNCBURN COMMUNITY (@KingAnu53015481) September 8, 2022
The price of Terra Classic has climbed by 8.19% during the past 24 hours. The tokens’ success on the weekly charts is even more impressive, where LUNC has soared over 80% in the last week.
The v22 Refresh
The v22 upgrade most certainly contributed to LUNC’s triple-digit growth. After the upgrade, investors can reinvest in the network. According to Staking Pays, LUNC rewards investors up to 37.8%, which is quite attractive. However, unsustainable interest rates remain a worry, especially during periods of constrained liquidity.
The LUNC Burner website indicates that more than 3 billion LUNC tokens have been withdrawn from circulation. The procedure will help reduce the amount of currency currently in circulation. Nonetheless, the token’s value is rising. The biggest cryptocurrency exchange, Binance, stated on August 26 that it would restrict deposits and withdrawals for the duration of the network upgrade.
According to Binance’s release, LUNC trading would not be affected. However, this endeavour has long been requested by the community. Consequently, the rise in trade volume and price indicates a more optimistic outlook.
Changing the Tax Configuration
After the proposal to modify the Terra Luna Classic tax setting, Terra Classic is exhibiting positive momentum. The plan is to collect taxes and burn them to finance on-chain activities. The tax will not be applied to off-chain activities, such as trading on CEXs.
The first complete proposal for this transaction tax was issued in June. It did not define how this would function or what coding would need to be added to the network’s backbone for it to operate.
Edward Kim, a community member, recently presented a more detailed plan on Terra Classic’s official forum, which provided further details on how the tax will function.
Kim’s proposal indicates that if the tax is applied, this may be a crucial period for Terra’s LUNC token, with its value hitting $1. This explains why the LUNC/USD has done so well over the past several weeks.
In addition, Binance stated in a blog post on September 2 that it no longer allows LUNC deposits and withdrawals over the Ethereum network (ERC20) and USTC. It will also suspend transactions on the Polygon, Ethereum, and BNB Smart Chain networks (BEP20). On September 7, 2022, they will temporarily prohibit withdrawals and deposits.
Being a controlled exchange, Binance’s decision to cease taking deposits and withdrawals does not influence the taxing and burning plan. Consequently, investors were most likely unfazed by the exchange’s decision.