The value of several tokens linked to the Terra ecosystems has experienced an impressive surge, more than doubling in the past week. Among them, three standout tokens are Luna Classic (LUNC), Terra 2.0 (LUNA), and terraUSD Classic (USTC).
These tokens saw increases of up to 70% in the last 24 hours, extending weekly gains to over 300%. They have proven to be among the top performers among the top one hundred tokens by market capitalization, with year-to-date gains exceeding 10,000%.
The original network, created by Terraform Labs, continued as an independent blockchain, in contrast to Terra 2.0, a forked version created after the collapse of ecosystem. The market actively trades the tokens LUNC and USTC from Terra Classic, along with LUNA from Terra 2.0.
These significant value increases in the tokens are supported by various catalysts. Terraform Labs announced an allocation of $15 million towards two projects in the Terra ecosystem, strengthening liquidity and making certain exchange pools more attractive on those platforms. The Mint Cash project, focused on Bitcoin, revealed plans for a USTC revamp backed by BTC to maintain its dollar-pegged stability. Additionally, a distribution plan was mentioned for LUNC and USTC holders.
The Performance of Terra
According to the latest data provided by CoinMarketCap, Terra Classic is trading at $0.000253 after an incredible 33.2% increase in the last 24 hours. Its market capitalization also grew to $1.47 billion, while its market volume is $1.28 billion, growing just over 123%.
On the other hand, Terra Luna is trading at $1.06 after growing by 22% in the last day. Its market volume increased by 222%, surpassing $668 million, and its market capitalization is $630 million, also with a 22% increase in the last hours.
Furthermore, Binance implemented a burning program that permanently removes LUNC from circulating supply based on transaction fees earned on LUNC trading pairs. In June, a group of engineers self-named “Six Samurai” presented a revival plan for the Terra Classic ecosystem, including a testnet for financial services based on terraUSD, an application to generate yield for token holders, and a reward plan for developers.
~3.9 Billion $LUNC burned by Binance 🔥🔥🔥🔥
Thank you #Binance pic.twitter.com/HBiHOKU90m
— Terra Classic Foundation (@TCF_Terra) December 1, 2023
The collapse of the Terra network in May 2022, led by Do Kwon, resulted in a 99% drop in LUNA and UST tokens due to issues with the algorithmic stablecoin terraUSD (UST) backing. Since then, it has been struggling to recover.
