After the Terra original LUNA collapsed, Terra Classic (LUNC) was formed and since then the token has seen some rough days.
Now, the LUNC is witnessing an increase in its buying pressure which is fueling its price surge. Interestingly, increased demand for the token amidst the market volatility has pushed the token to gain 80% in a day. Terra Classic (LUNC) Price is trading at $0.0002687 after an increase of 12.86% in the last 24hrs.
Furthermore, Terra Classic has increased nearly 180% after it raised from $0.0001 on August 25. Around August 25 and September 1, due to such a notable price increase, LUNC’s market capitalization increased by over $1.2 billion, going from $665 to $1.87 billion. one moment within a day, LUNC’s value reached $2.23 billion.
Reasons Behind LUNC Price Rally
After Terra (LUNA) collapsed, the traders didn’t trust the newly introduced LUNC as many climbed that even this will soon disappear. However, still, the community has been very supportive. Since then there have been many developments happening around the token to Reduce the supply and increase the scarcity.
Among such is the recent development by TerraClassic creators who are working towards a new network upgrade. If that is completed it will allow investors to stake LUNC.
Lately, the network has seen an addition of version V22, a staking option into the blockchain. If the decision is effective and the suggestion is accepted, the postponed project will receive the much-awaited momentum that it requires.
On the other hand, just a month ago the largest crypto exchange, Binance, gave a word to support the network upgrade by putting up the deposits and withdrawals on hold on a temporary basis.
Terra experienced a favorable price change after revealing the launch of a new Governance Alert Bot on Monday (29 August). The Governance Alert Bot will keep the Terra community updated on all governance-related operations.
Meanwhile, the latest short squeeze activity might have also been a reason for TerraClassic (LUNC) price increase. Along with this, there is also speculation that LUNC could just follow the pattern of Dogecoin (DOGE) and Shiba Inu (SHIB).
Terra founder, Do Kwon, recently gave an interview, and his denial of any improper conduct in the collapse coincided with LUNC’s bullish sentiments. He claimed that the Terra community was home to a mole during the talk.