After the collapse of Terra Native LUNA, Terra Classic (LUNC) was formed and the coin has seen some tough days since then.
Now, LUNC is seeing an increase in its buying pressure which is fueling a rise in its prices. Interestingly, the rising demand for the token amid volatility in the market has pushed the coin up to 80% in a single day. However, at the time of reporting, Terra Classic (LUNC) price is trading at $0.0002687 after an increase of 12.86% over the past 24 hours.
In addition, Terra Classic has gained almost 180% since it was raised from $0.0001 on 25 August. Due to such remarkable price increases, around August 25 and September 1, LUNC’s market capitalization increased by more than $1.2 billion, from $665 to $1.87 billion. In almost an instant within a day, the value of LUNC reached $2.23 billion.
Reasons Behind LUNC Price Rally
After Terra (LUNA) collapsed, traders did not trust the new LUNC as many climbed that it too would soon disappear. However, nonetheless, the community has been very supportive. Since then there have been several developments around the coin to reduce supply and increase scarcity.
Among them is a recent development from TerraClassic creators who are working towards a new network upgrade. If this is completed it will allow investors to own a stake in LUNC.
Recently, the network added version V22, which is a staking option in the blockchain. If the decision is effective and the suggestion is accepted, the stalled project will get the much-awaited momentum it needs.
On the other hand, just a month ago the largest crypto exchange, Binance, gave a word to support the network upgrade by pausing deposits and withdrawals on a temporary basis.
Terra experienced a favorable price change on Monday (August 29) after revealing the launch of a new governance alert bot. The Governance Alert bot will keep the Terra community updated on all governance related tasks.
Meanwhile, the latest short squeeze activity could also be a reason for the TerraClassic (LUNC) price rise. Additionally, there is speculation that the LUNC may just follow the pattern of Dogecoin (DOGE) and Shiba Inu (SHIB).
Terra’s founder, Do Kwon, recently gave an interview, and his denial of any inappropriate conduct in the collapse coincided with LUNC’s bullish sentiments. He claimed that the Terra community was a mole’s house during the conversation.