The decline in LUNC's price is part of a broader trend impacting the #cryptocurrencymarket . Major digital assets such as Bitcoin and Ethereum have also experienced significant price corrections, reflecting market-wide adjustments. These trends indicate that LUNC's price drop is influenced by overall investor sentiment and macroeconomic factors affecting the entire crypto sector. As these leading cryptocurrencies face challenges, smaller assets like #TerraClassic are similarly affected, resulting in decreased investor confidence and further price declines.
Will Terra Classic ($LUNC ) Price Crash to 0?
There are rumors that LUNC whale burned 184 million tokens. This burn, which reduces the overall supply of #LUNC✅ , is expected to have a notable impact on its price dynamics. By reducing the available supply, the burn can potentially increase scarcity, thereby exerting upward pressure on the price if demand remains constant or increases. Moreover, the whale has announced plans for an additional 2 trillion token reduction. If executed, this substantial decrease in supply could further amplify the scarcity effect, potentially leading to significant price appreciation over time. However, market sentiment and external factors such as investor confidence and broader economic conditions will also play crucial roles in determining the actual impact on LUNC's price.
Based on the current analysis, the likelihood of LUNC crashing to zero appears minimal, despite recent challenges. LUNC has high liquidity, evidenced by its significant market cap of $413.39 million and a 24-hour trading volume of $15.05 million. This #liquidity indicates a continued interest and activity in the token, which supports its market presence. Furthermore, the yearly inflation rate for LUNC is negative at -0.47%, suggesting a decreasing supply, which can potentially create scarcity and support the price over time.
However, LUNC has seen a substantial price drop of -14% over the past year and has underperformed compared to 86% of the top 100 crypto assets, including Bitcoin and Ethereum. It is currently trading below the 200-day simple moving average, a key indicator often used to assess long-term trends, indicating bearish sentiment. Additionally, LUNC has only experienced 11 green days out of the last 30 (37%), showing limited positive momentum. The price is also down 100% from its all-time high, reflecting significant declines from its peak.
Considering these factors, while LUNC faces considerable downward pressure and has underperformed relative to major cryptocurrencies, its high liquidity and negative inflation rate provide some stability. The planned burn of an additional 2 trillion tokens could further enhance this stability by reducing supply. Therefore, although LUNC may continue to experience volatility and downward trends, a complete crash to zero is unlikely given the current data and market conditions.
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Data from #TerraClassic Foundation has revealed that over 1.017 trillion $LUNC tokens have been staked, representing roughly $70.15 million at the current market price. This splendid staking ratio of 15.01% showcases how strongly the community is backing the project.
Staking primarily is the locking of tokens thus reducing the circulating supply. This decrease in supply, coupled with increased demand, can potentially drive the price of #LUNC✅ upwards. Noteworthy, the staking ratio rose from 14.83% to 15.01%.
Binance has played a significant role in reducing the overall supply of #TerraLunaClassic tokens. Early this month, Binance, the world’s largest crypto #exchange by market volume burnt its 23rd batch (from May 31 to June 29), a burning mechanism that kicked off in early 2022. It is worth noting that Binance alone has burnt more than 62 Billion LUNC tokens contributing to more than 50% of total tokens burnt which amounts to 125 Billion tokens.
As earlier reported on CNF, the crypto market faced humongous pressure recently due to the Bitcoin price correction. Currently exchanging hands at $57,387.77, marking an 8.67% decline in the past week, Bitcoin has undergone a great ordeal after the Mt.Gox repayment news hit headlines and the massive liquidation of the German government. Dropping to lows of $53,550, Bitcoin has sent bearish trends to the altcoin market with Terra Luna Classic being no exception.
At the time of writing LUNC is Staking at $0.00007065, representing a noble 3.56% surge in the last 24 hours. Notably, Early March saw LUNC’s price falling from $0.00025 to $0.0000673 by July 5, marking a substantial 73.6% decline. However, on July 7, LUNC price saw a rebound with over 7% gains, trading at $0.00006898.
The recent price increase suggests that a further drop to $0.000052 might be unlikely. To restrict the downturn, the LUNC price needs to break out from $0.00007 and sustain that level. The current market cap for LUNC stands at $376.43 billion. The reduced token supply due to token burns by Binance and community staking can aid in boosting the Terra Luna Classic price.
The surpassing of 1 trillion staked LUNC tokens and the staking ratio hitting 15% marks a significant milestone for the Terra Luna Classic community. Coupled with continuous support from Binance indicates a positive outlook for LUNC. Additionally, the Terra Luna Classic community is actively working towards reviving the LUNC price. The impressive staking numbers, ongoing burns, and Staking on the strategic adjustments to the burn tax distribution indicate a commitment towards success.
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With staking being the pillar of any healthy DeFi ecosystem, the developers of #TerraLunaClassic (LUNC) have announced a long-awaited update that will massively boost staking rewards in the ecosystem.
As Crypto News Flash reported last month, one leading $LUNC developer had proposed adjustments to the network’s burn tax distribution. His proposal allocated 10% of the tax to the Oracle Pool. In the Terra Luna Classic ecosystem, the Oracle module furnishes the network with up-to-date price feeds of #exchange rates in the real world and is the foundation of the network’s DeFi.
As one of the key developers revealed Wednesday, the Oracle split logic has finished and the testnet is ongoing.
The Oracle split is contained in proposals 12098 and 12114, which are part of Release v3.1.0. It will divert community pool rewards to the Oracle Pool, slowing down its depletion rate (the rewards originate from the tax split.
Under the existing mechanisms, Terra Luna Classic has a 0.5% burn rate—80% of it goes to burns, and the remainder is distributed to rewards and the Community Pool. It is this 20% that the new proposal targets, recommending that it be split between the Community Pool and the #Oracle Pool.
The proposal isn’t popular in some quarters. A key grievance is its obvious implication on block rewards for #LUNC✅ validators—under the new mechanism, block rewards would come exclusively from gas fees. The annual percentage rate is also expected to dip by 0.5%. Some experts have even warned that passing the proposal could lead to immediate price declines.
However, the proponents point out that this shift would benefit the ecosystem in the long run, primarily by boosting staking.
LUNC staking has grown massively in recent months. As Crypto News Flash reported two weeks ago, the staked LUNC hit 1 trillion amid aggressive growth since the start of June. This growth continues, with the community staking just under 250 million LUNC in the past 24 hours and over nine billion tokens in the past week. Overall, staked LUNC accounts for 15.09% of the total tokens, sitting just marginally below the all-time record achieved last October.
On the trading front, LUNC has dipped slightly over the past day to trade at $0.00007117 amid a 21% drop in the trading volume.
As one analyst points out, the token has been trading inside a falling channel and changes hands below its 50-day and 200-day simple moving averages (SMAs). If it finds strong support, the analyst expects LUNC to surge 67% and hit $0.00017. However, if it fails to hold up, the next support will be further down at $0.00005646.