- Terra Classic (LUNC) experienced a significant price hike following Binance’s announcement to support the Terra network upgrade.
- The upward momentum may continue due to decreased token supply and continuous support from Binance.
The Binance Boost: Terra Classic (LUNC) Scales Up
Binance, the world’s premier crypto exchange, recently set the Terra Classic (LUNC) on an uptrend. The support for the Terra network upgrade, slated to occur at the Terra block height of 5,994,365, sparked a significant price rally for LUNC.
Unleashing the Bull
Following this pivotal announcement, LUNC prices experienced an exhilarating bounce. Amid the often-tempestuous crypto market, this marked a compelling shift for Terra Classic, which has navigated a labyrinth of price fluctuations over recent months.
The surge was such that LUNC seized a spot among the day’s five largest gainers. With an almost 5% uptick, it landed fourth in the 24-hour price gain chart, trailing 1inch Network (1INCH), Basic Attention Token (BAT), and Algorand (ALGO). The price boost pushed LUNC to trade at $0.000096, up 4.75% in the last 24 hours, adding close to $50 million to its market cap in just one week.
However, while this surge appears promising, it’s vital to remember that LUNC remains down by approximately 35% year-to-date.
Stoking the Flames
In analyzing this resurgence, the gaze falls inevitably on Binance CEO Changpeng Zhao. His disclosure that Binance invested $3 million into Terra in 2018 and has held its LUNC assets untouched stirred optimism among Terra Classic enthusiasts. This announcement injected vigor into the embattled crypto token, triggering its resurgence.
Moreover, the Terra Classic core developer team Joint L1 Task Force (L1TF) recently disclosed its Q3 plans. They intend to intensify efforts to reduce the circulating supply of LUNC and its stablecoin TerraClassicUSD (USTC) by reinitiating the validators-led LUNC burning process. This strategy could potentially amplify the token’s price by creating a demand-supply gap.
Binance’s endorsement and the L1TF’s strategic plans have undoubtedly contributed to LUNC’s upward trajectory. If the momentum continues and the supply decreases, we might see LUNC reach the elusive $0.0001 mark sooner than anticipated.