- The Terra Luna ecosystem witnesses a significant surge as LUNA and LUNA Classic (LUNC) break multiple resistance levels, stirring increased buying interest among traders.
- The LUNA Classic community’s soft fork proposal aiming at setting a minimum validator commission is seen as a decisive step, contributing to the ongoing positive price action.
Amid a thriving altcoin market, the Terra Luna ecosystem has recently captured significant attention, especially with LUNA and LUNA Classic (LUNC) demonstrating notable price surges. The bullish sentiment is attributed to these tokens breaking several resistance levels, hinting at a rekindled buying interest. While the ecosystem rides on a high, a vital development within the LUNA Classic community has accelerated the positive price action.
A Strategic Soft Fork Proposal Fuels LUNC’s Momentum
A catalyst for the upward trend was the recent proposal within the LUNA Classic community for a soft fork. This proposition aims at instituting a minimum validator commission alongside implementing technical improvements. It comes on the heels of an earlier proposal to raise the minimum deposit to 5 million LUNC to mitigate spam, following an inadvertent setting of the validator commission to 0% during a previous upgrade.
The soft fork was championed by Till Ziegler, advocating for this approach over a simple governance proposal. Subsequently, blockchain engineer Vinh tabled the v2.2.2 soft fork proposal that encapsulates a 5% commission among other upgrades. The voting, slated to conclude on October 3, 2023, has thus far witnessed a unanimous 1.64% “Yes” vote share. Preceding this, the LUNC community opted to suspend all Terra Classic USD (USTC) minting endeavors. These consecutive developments have evidently reignited market enthusiasm, propelling LUNA and LUNC prices.
On-chain data reflect a significant short-liquidation spike for LUNC, exceeding $20K recently. Concurrently, LUNC’s Open Interest has surged by $1 million, indicating escalating trading activity. Nonetheless, a bearish correction appears plausible as the long-short ratio dwindles to 0.67.
Contrastingly, LUNA has encountered a bearish liquidation nearing $300K. Its Open Interest soared by $16 million within a mere two-day span, suggesting potential price volatility near resistance thresholds. Albeit, a minor bearish correction is observed as traders capitalize on profits.
The trajectory of LUNC‘s price is now under meticulous observation, especially with its value rising by 15.6% over the last week, breaking crucial resistance at $0.000065. Current market dynamics, spearheaded by the soft fork proposal, hint at an intriguing phase for LUNC and the broader Terra Luna ecosystem.