Once again, Terra Classic is the talk of the crypto community. At the end of August, the market’s volatility began to increase. In fact, it was at its 1-month high at the time of publication. As a result, the price of LUNC has fluctuated dramatically by more than 51% in the last day and 132% in the previous week.
It appears that LUNC is currently experiencing a bull run during a bear market. Yet, why?
Terra Classic seems to be in a pot of luck
The social sentiment related to Terra Classic has been improved according to data from LunarCrush. Both engagements and mentions have significantly increased; the former saw a week-over-week increase of 121% and the latter, a 140% increase.
Additionally, the ecosystem has been continuously gaining new participants. According to CMC’s statistics, the number of LUNC HODLers has remained close to its peak of 10,683. The same signifies that a small number of people are no longer in charge of the price and that Terra Classic’s climb is probably not a hoax.
Furthermore, the ecosystem has been seeing technological advancements at the same time. The v22 upgrade for LUNC validators was voted on earlier last week, as was mentioned in a recent post. People in the community believed the vote would pass, and it did. Leading exchanges like Binance showed their support for the upgrade by halting deposits and withdrawals until it was finished.
The project would receive a much-needed boost if the v22 upgrade was approved. Terra Luna Classic should ideally experience some favourable changes after the staking feature goes active once more. Staking will restart on the Terra Luna Classic network on August 26th, if the update is approved by the vote.
Additionally, LUNC burns are proceeding apace. LunaBurnTracker reports a 34% increase in burns. The staking feature on Terra Classic became operational as a result of the aforementioned network change. Currently, 7% of LUNC’s supply has been staked. The fact that stakers receive a compensation of 37.9% for staking their tokens, according to stakingrewards, may be a factor in LUNC’s recent surge in popularity.
Regular burning have also been occurring within the ecosystem, and these two developments, along with others, have had a favourable effect on the price of Terra Classic.
Many even compared the failure of Terra to the downfall of Lehman Brothers during the 2008 financial crisis because it was unlike anything else in the crypto business that had ever happened before. Do Kwon, a co-founder of Terra, recently gave his first interview following the tragedy and expressed regret for his error of judgment.