Kalkine : Terra Classic up 50%: Why is LUNC crypto rising?

Highlights

• LUNC crypto is the older version of the Terra ecosystem, however, the now LUNC was once LUNA crypto
• LUNC has been on a surge of late with the token price getting doubled in a week
• Pulsar Finance has recently tweeted about things like Terra 2.0 NFTs and mobile under-interface

The cryptoverse can spring a surprise at virtually any time. In May this year, two of the major cryptocurrencies, TerraUSD and LUNA, collapsed and triggered a broader fall, which saw even the largest crypto Bitcoin losing a substantial value.

As of writing, and when the cryptoverse is down as compared with the total market cap a day ago, the Terra ecosystem is shining brightly. Terra Classic or LUNC crypto is up almost 50%, and the 24-hour trading volume has also rallied sharply. What has sparked this rally in LUNC crypto, and is it going to be sustainable? Let us explore the Terra ecosystem in this light.

Terra rebranding

Terra had a stablecoin and a regular cryptocurrency until a few months back. The former, TerraUSD, could not retain its peg with the US dollar and the coin experienced a tumultuous run beginning May 2022. The regular cryptocurrency was LUNA, which was used by the ecosystem to run the so-called ‘algorithmic’ stablecoin.

By the end of May, the users of Terra -- which is primarily an open-source blockchain network that can support the deployment of new DApps -- passed a proposal for a sweeping change. This change helped LUNA crypto rechristen Terra Classic with its ticker being LUNC. The stablecoin part of the Terra ecosystem was halted.

LUNC price

Now named Terra Classic, LUNC was a relatively popular cryptocurrency at the start of this year, when its price was around US$90. The price came crashing down in May and it even fell below US$1. As of writing, LUNC crypto is trading at nearly US$0.0002.

That said, over the past seven days, the LUNC token has doubled its price. The token has gained almost 50% over the past few hours alone.

Why is LUNC rising?

The crypto has been trading in the green for nearly a week. This is despite the shift of the Terra ecosystem to the rebranded Terra crypto with ticker, LUNA. The price of one LUNA token is nearly US$1.7 as of writing. LUNC crypto could be rising for two reasons. First, an interface called Pulsar Finance, which claims to manage certain aspects of the Terra ecosystem, has recently tweeted on things like Terra 2.0 non-fungible tokens (NFTs) and a mobile-friendly user interface.

Second, it were the holders of LUNC crypto that rebranded the blockchain as Terra 2.0, and hence any development in Terra 2.0 can likely move the price of LUNC.

Data provided by CoinMarketCap.com

Bottom line

Terra 2.0 has LUNA crypto, which is operating as an independent token. LUNC is the older version, and since the Terra ecosystem has sustained many losses this year, caution must be exercised by crypto enthusiasts.

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