Terra Classic (LUNC) has taken centre stage in what seems like a bullish week for the cryptocurrency market, and many wonder whether it could hit $0.01 anytime soon.
Speculation about a rally is driven by the recent surge in token prices and the notable development activities on the Terra blockchain. Many believe that these events could set the token on the path of achieving its previous peak price of $120.
Recent Price Movements of LUNC and USTC
Over the last 48 hours, LUNC has experienced a 1% price increase, and over the past week, it surged impressively by 15%. Currently, LUNC is trading at $0.000063. In the same 24-hour period, its lowest point was $0.0000612, while it reached a high of $0.0000671.
On the other hand, USTC, LUNC’s stablecoin partner on the Terra blockchain, is currently trading at $0.011, with a recent 3% increase in the last 24 hours and a notable 12% increase over the week. In the same 24-hour period, the lowest USTC reached was $0.0115, and its highest point was $0.0137.
These price movements have been attributed to a decrease in the total supply of USTC due to a planned 800 million USTC burn initiated by the community.
Community Efforts to Revitalize LUNC & USTC
After the 2022 Terra-LUNA crisis, Terra Luna Classic became a community-managed blockchain network. Since then, the community has actively explored ways to reinvigorate and enhance the appeal and prices of the blockchain’s two tokens: LUNA, now rebranded as LUNC, and UST, now rebranded as USTC, the foremost algorithmic stablecoin in the market. One of their strategies is to reduce the supply of these assets through burning periodically.
Recently, the community decided to burn a significant number of USTC tokens, approximately 800 million, which accounts for about 9% of the total supply. This decision followed several months of debate, with proponents arguing that burning was necessary to encourage wallet owners to participate in the broader initiative to stabilize the token.
$LUNC Prop 11675 from our Quant team is not passing with flying colours which I am quite surprised to see! Our Quant team have been clear that to give us the best chance for $USTC repeg, we have to burn it so why are we all not supporting this Prop? #BurnItAll 🔥🔥 pic.twitter.com/WYfUolWOLT
— Terraport Finance (@TerraValidators) August 9, 2023
Alex Forshaw, a community member, notably asserted that the action aligns with the Terra Classic community’s goals to revive the chain and rebuild trust within the community. Forshaw explained that burning the 800 million USTC will help revitalize the struggling community by making the remaining USTC holdings more valuable in USD terms.
After the proposal was approved, community developers started making changes to the token’s code to update USTC data beginning on October 20, 2023.
The code to blacklist the wallet of 800 million is done , thanks @TheVinhNguyen4 and @frag_dude for the fantastic work… #Lunc #ustc #burn
— Vegas (@VegasMorph) October 20, 2023
On October 25, a prominent member of the LUNC community, an X user with username Vegas, announced the changes were successfully implemented and that USTC’s supply data on CoinMarketCap and CoinGecko have reflected a reduction of 800 million as planned.
#Lunc community, in just a few hours, the circulating supply of #USTC displayed on both CoinMarketCap (CMC) and CoinGecko (CG) will accurately represent the supply without the 800 million USTC. Keep hitting that F5 key—hahaha! This achievement was made possible with the precious…
— Vegas (@VegasMorph) October 25, 2023
However, there are speculations that this action might not have happened as it has been reported.
Shaky Confidence & Warnings
The decision to burn 800 million USTC tokens also involved blacklisting the wallet holding them. However, another community member has advised other members to exercise caution when taking trading positions in both USTC and LUNC.
The community member, an X user with the username Rexyz, gave this advice while expressing concerns about the accuracy of the new circulating supply data displayed on CoinMarketCap, particularly regarding the algorithmic stablecoin’s liquidity.
🚨WARNING🚨
Be extremely careful if you buy USTC/LUNC on the back of the 800m wallet blacklisting and the reduced circulation. This blacklisting has not actually taken place in the code yet, so this reduced supply is NOT correct.
Also there is still no legal document suggesting… pic.twitter.com/88Pq7txnB4— Rexyz (@RexYellerBelly) October 25, 2023
Rexyz’s caution contrasts with Vegas’s confidence in the plan, as Rexyz suggests that the code hadn’t implemented the blacklisting nor the burning of the tokens.
Rexyz supported his arguments by pointing out that there’s no legal documentation confirming the legality of the blacklist.
His comments emphasize the importance of being cautious due to the possibility of significant price swings.
In Conclusion
AI predictions from CoinCodex offer a less optimistic outlook for LUNC, foreseeing a modest 1.03% growth by 2024, with the price remaining around $0.000061. The following years appear even more challenging, with forecasts suggesting significant declines.
Hence, the idea of LUNC reaching $0.01 remains a distant dream, as it faces a tough road ahead. Even with bold strategies like a 90% reduction in supply and a steady 50% annual growth, it might take about a decade to reach one cent.
Nevertheless, the cryptocurrency space is full of surprises. With solid strategies, favourable market conditions, and community support, LUNC has the potential to make its mark in the industry and perhaps reach $0.01 in the not-too-distant future. For instance, its prior success as LUNA and its innovative potential can be the driving force behind Terra Classic’s future achievements.
Finally, we will end with a note of caution: past performance does not guarantee future results. So stay informed, follow the latest news and do your due diligence before making investment decisions.
Disclaimer: This piece is intended solely for informational purposes and should not be considered trading or investment advice. Nothing herein should be construed as financial, legal, or tax advice. Trading or investing in cryptocurrencies carries a considerable risk of financial loss. Always conduct due diligence.
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