The price of LUNC has increased by 200%! Explanations below.
The price of LUNC has increased by 200% over the past 14 days. There are a couple of possible explanations for this.
It has been a rollercoaster few weeks in the cryptocurrency world, with huge swings in prices across the board. While the established market leaders Bitcoin and Ethereum have both seen modest gains, the native coin of Terra Classic – LUNC – has soared by an impressive 200%. This volatility is sure to continue in the weeks and months ahead, so investors will need to keep a close eye on developments in this exciting and ever-changing industry.
The Terra classic chain and the new chain have both been through a lot of volatility recently. Let's explore the reasons why.
Terra Classic is a digital currency that allows users to transact without fees.
LUNC's surge in popularity can be attributed to the growing popularity of Terra Classic. Terra Classic is a game that has been gaining in popularity lately. It is a multiplayer online game that pits players against each other in a battle for supremacy.
The Terra ecosystem has been through major issues this year, associated with the peg of its algorithmic stablecoin – UST. The latter lost its dollar parity, and while this might be fatal for regular centralized stablecoins, it was the final nail in the coffin for UST.
The Terra ecosystem crash was caused by a burning mechanism that allowed users to buy LUNA tokens and redeem them for UST at a premium. This arbitrage worked until there was liquidity and left hundreds of users with devastating losses. Billions were wiped off the market as a result.
Do Kwon's rescue plan for the ecosystem includes a chain split. This will allow for the old ecosystem to be salvaged and rebuilt.
On May 16th, he proposed the fork of the existing Terra chain, hence creating two networks. The first one would be the new version called Terra. Its token carries the original LUNA ticker. The second one would become Terra Classic, and its native cryptocurrency would carry the LUNC ticker. Both chains have developers who work on them independently and coexist.
LUNC Price Up 200% in Two Weeks
The Terra Classic community is working hard to proposed various mechanisms and introduce features that are designed to help the ecosystem grow. We are committed to making our platform the best it can be and will continue to work hard to improve it. Thank you for your support!
It's great to see that the new staking service is up and running on the Classic chain! The cryptocurrency has been doing incredibly well since it launched, and I can't wait to see what the future holds for it.
I predict that LUNC will continue to rise in value, due to the increasing popularity of staking. Staking allows users to earn yield on their investment, which is a major incentive for people to invest in the coin. I believe that LUNC will continue to grow in popularity and value in the coming days and weeks.
The current yield from staking Terra on StakingRewards is 38%. However, running a LUNC validator node currently yields 42%. This difference in yield may not seem like much, but over time it can add up to a significant amount. With Terra's price currently on the rise, now is a great time to start staking your coins and earning a passive income.
I believe that the tax-and-burn mechanism proposed by Edward Kim is a good way to help the Luna Classic community recover from the recent hack. By taxing all LUNC transactions and then burning the funds, we can help to stabilize the currency and make it more secure. This will ultimately benefit all members of the community, as we will be able to use Luna Classic more confidently and securely.
There are many reasons why Terra Classic (LUNC) is up 200% in value over the past two weeks. One reason is that the cryptocurrency market has seen a lot of growth recently. Another reason is that Terra Classic has been gaining popularity as a stablecoin.