What’s the Reason Behind Terra Classic (LUNC) Price Rally?

Terra Classic (LUNC) Proposal 11168 by Key Devs Up For Voting
  • LUNC has seen increasing capital inflow, reaching $981 million.
  • Terra community Contro Protocol Grant Proposal voting has been completed.

While the global cryptocurrency market is still in a consolidation stage, the price of Terra Classic (LUNC), the original chain of the collapsed Terra (LUNA) ecosystem, is surging. LUNC continues to be lifted by increased buying pressure.

The price of Terra Classic has soared by around 21% in the last 24 hours and traded at $0.000184. Also, LUNC value has surged by over 41% since last week, while other altcoins have shown limited price movement due to the current market volatility. 

Terra Classic (LUNC) price chart (Source: Tradingview)

Additionally, Terra Classic has achieved increases for three straight red candle days and performing differently from the market movement. Also, LUNC has seen increasing capital inflow, reaching $1 billion at the time of writing. Also, the token reporting a flood of about $100 million market cap in just one day.

Reason Behind the LUNC Rally

Following the collapse of the Terra ecosystem, the community is concentrating on attempting to reclaim the status of LUNC through a multitude of planned continued development. In particular, the Terra network has observed increased burning of LUNC tokens. Which were implemented in an attempt to boost the value of the asset.

The most recent rally resulted in the Terra Luna community voting on a new motion called “Contro Protocol Grant Proposal” has been ended. That would overturn the decision to move 50% of all LUNC burns to a community development pool. It has the ability to create a sizable amount of fee income. 10% of which will be used to purchase LUNA tokens and contribute them back to the community pool permanently.

Notably, Terra Classic has maintained its upward trend in the wake of growing endorsement for the token from reputable organizations. LUNC spot and margin trading fees, for example, have been deliberately burned by cryptocurrency exchange Binance. However, the LUNC rise is still going strong. And further upside momentum is probably going to be witnessed over the coming few days.

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