- Terra Classic’s bulls were controlling the market at press time.
- Whales’ USTC holdings increased, but its Social Volume dropped.
The tokens of the Terra ecosystem, like Terra Classic [LUNC] and TerraClassicUSD [USTC], have shown remarkable performance in terms of price action.
While most cryptos struggled to lift their prices, both LUNC and USTC were up by double digits in just the last 24 hours. What’s behind this rise?
A look at the history
To understand the significance of recent developments, it’s important to turn back the clock to May 2023, when the Terra ecosystem’s stablecoin, USTC, depreciated from its $1 value and reached 35 cents.
This episode not only caused the network’s native token to plummet, but it also kicked off a bear rally, which resulted in a massive drop in the global crypto market capitalization.
As an effort to revive the ecosystem, community voters passed a proposal in late May to launch a new blockchain named “Terra 2.0” without a stablecoin.
The new blockchain’s native token was named LUNA, while the previous LUNA token was rebranded as Terra Classic, LUNC.
Is Terra Classic’s fate changing?
However, things started to turn in Terra Classic’s favor in the recent past. AMBCrypto reported earlier that Binance [BNB], which is the largest crypto exchange in the world, made an announcement that somewhat gave hope for a trend reversal.
Notably, Binance Futures launched the USD-M USTC Perpetual Contract on the 27th of November 2023, with up to 50x leverage.
Since then, both tokens have displayed a promising bull rally. During the last seven days, LUNC’s price has rallied by more than 100%. The token’s value increased by over 45% in the last 24 hours alone.
According to CoinMarketCap, at the time of writing, it was trading at $0.0002331 with a market capitalization of over $1.35 billion, making it the 51st largest crypto.
Another good news was that Terra Classic’s burn rate has also been on the rise since the beginning of this month. To be precise, to date, over 8.3 trillion tokens have been burned until press time.
Source: Luncmetrics
AMBCrypto then checked LUNC’s daily chart to find what was supporting its surge. We found that, as per indications of the Bollinger Bands, LUNC’s price was in a high volatility zone at press time.
The MACD also displayed a clever bullish advantage in the market. Moreover, both its Relative Strength Index (RSI) and Money Flow Index (MFI) had values above 90.
Though these metrics were bullish, only time will tell how much longer the token can hold such high numbers, as these numbers might cause increased sell pressure in the coming days.
Source: TradingView
The market’s overall confidence in Terra Classic also remained high at the time of writing. This was evident from the fact that both LUNC’s Galaxy Score and AltRank improved in the last week. Its Social Dominance also increased by 85%.
It was interesting to see that LUNC’s Market Dominance surged by over 100% last week, which could be attributed to its recent price gains.
Source: LunarCrush
Surprisingly, while investors’ confidence in LUNC remained high, stakers had something else on their minds. AMBCrypto took a look at Luncmetrics data and found that the token’s staking ratio plummeted over the last 30 days.
At press time, LUNC’s staking ratio only stood at 14.9%, with a total of over 1 trillion LUNC tokens staked.
Source: Luncmetrics
USTC is also on par
Like Terra Classic, USTC also showed signs of improvement. Though the stablecoin has a long way to go to reclaim its $1 value, these recent developments do give hope for a full-scale recovery.
According to CoinMarketCap, USTC was up by more than 41% in the last seven days. At the time of writing, it was trading at $0.06548 with a market cap of over $587 million. These recent gains allowed the coin to reclaim its lost market cap.
The rising market cap was accompanied by a more than 100% rise in trading volume, reflecting investors’ willingness to trade the coin.
AMBCrypto then checked Santiment’s data and found out that investors were buying USTC at the time of the report. This was evident from the massive drop in its Exchange Inflow.
Read Terra Classic’s [LUNC] Price Prediction 2023-24
The whales’ faith in the stablecoin was high at press time, as its supply held by top addresses increased. This indicates that the whales are expecting the coin’s price to rise further.
However, it was surprising to see that, despite such a promising uptick, USTC’s Social Volume dropped over the last seven days, as did its Social Dominance.
Source: Santiment
