LUNA Classic Burn: LUNC Comes Back with 2,400% Gains in Last 7 Days
LUNC price comes back with a significant 2,400% gain in last 7 days due to new launched features like LUNA Classic burn to revive the Terra.
Terra LUNA Classic price continues to climb higher amid revive plans to recover the chain and attract investors back. LUNC price has soared to $0.00031131 since August 26, which equates to a gain of more than 2,400%.
However, the bull market has begun to run out of steam, with LUNC giving up all of today’s gains and returning to below the previous day’s closing price.
Despite this, the previously “dead” token is up a staggering 27,000% since LUNC’s all-time low of $0.000000999967 on May 13.
LUNA Classic (LUNC) Makes a Comeback
The Terra ecosystem crashed in May after the UST de-peg. During the panic, the stablecoin fell to $0.006. Despite attempts to re-establish its peg price, UST remains well below $1 and currently trades at $0.03458.
UST worked in conjunction with the native LUNA token in an algorithmic process to ensure the stability of its price. Since the loss of the peg, the entire Terra ecosystem has been plagued by controversy, with allegations that the project was a scam from the start, orchestrated by founder Do Kwon.
With billions lost and regulators circling, the development and governance were handed over to the community and renamed as LUNA Classic. But many investors remain wary given the controversy, especially those previously stung by the scandal.
Nonetheless, the launch of the new features seems to have won investors over, as evidenced by LUNA Classic’s impressive growth since mid-August. Crypto analyst Miles Deutscher notes that LUNA Classic proves that huge returns can be made during bear markets.
LUNA Classic Burn and Staking, What’s Next?
At the heart of this revival is a generous staking mechanism, which went live on August 27. The staking ratio was at 2.6% of the total supply on launch. However, the staking ratio continues to grow. According to @LuncStaking_Bot, the current ratio has almost tripled to 7.5% in less than two weeks.
Current LUNC staking rewards are about 37% per year, well above Cardano’s return of about 5%. However, unsustainable yields was a factor in the demise of the original Terra ecosystem.
As well as the existing burn mechanism, which has taken out more than In addition to the existing burn mechanism, which has removed over 3 billion tokens from circulation, Deutscher tweeted an additional burn mechanism that applies to token swaps at a rate of 1.2% of transaction volume.
He added that some of the major crypto exchanges including Binance and Kucoin, are rumored to support LUNA Classic burn, due to go live on September 12.
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