#Terra Luna Classic (LUNC), the #cryptocurrency which powers the original Terra blockchain that experienced catastrophe after its associated algorithmic “stablecoin” UST lost its 1:1 per to the US dollar last May, is close to 12% higher versus its Tuesday lows in the $0.000085 area.
LUNC/USD was last changing hands around $0.000094, with the cryptocurrency having experienced extreme volatility in recent days.
On Sunday, the cryptocurrency saw a huge 33% surge following the bullish breakout above a short-term pennant structure and the cryptocurrency’s 21DMA.
But the cryptocurrency for now holding to the north of a downtrend from the earlier yearly highs, the prospect of a retest of recent highs in the $0.0001150 area are good.
Readers might recall that, when UST lost its 1:1 peg to the US dollar last May, this triggered a “bank run” that caused a so-called “death spiral” in LUNC.
LUNC holders lost everything as the supply was hyper-inflated as UST owners redeemed their UST tokens on masse via the protocol’s mint-burn mechanism.
The Terra ecosystem saw an exodus of nearly all its capital, users and developers and has never recovered.
LUNC represents a long-dead and gone cryptocurrency network – the disaster of May 2022 dealt a fatal blow to the Terra project and its credibility and LUNC holders might want to consider giving in and selling whilst they still can.
Can #LUNC Reach $1?
A rally to $1.0 per token is unlikely, unless the Luna Classic community implements big changes to the cryptocurrency’s tokenomics.
That’s because, at present, there are close to 7 trillion LUNC tokens in circulation.
Most would agree that Luna Classic is unlikely to ever reach a $7 trillion market cap, not least because the blockchain’s entire web3 ecosystem was obliterated in mid-2022 when UST depegged from the US dollar and triggered hyperinflation in LUNC.
