The Period Of Resurrection With LUNA’s Surge
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Without a doubt, Terra was at the center of the 2022 crypto market crash. The project was one of the most prosperous before the disaster, reaching a record high of $119.18 in April. But the soaring climb paved the way for the legendary drop. The resulting death spiral enraged investors and users. Many people’s lives were completely destroyed and they lost everything they had saved for. Since then, the team has created a new token Terra Luna (LUNA) and named the current one Terra Luna Classic (LUNC).
After a dramatic crash earlier this year, the Terra blockchain cryptocurrency LUNA was re-created. On Friday, the price of LUNA tripled to near the all-time high reached in early June when the token was issued.
According to data from cryptocurrency price tracker CoinGecko, the price of the token rose from less than $2 to around $7. At the time of publication, LUNA was trading at around $6, up over 212% over the previous 24 hours due to significantly higher trading volume.
The original coin of the second iteration of the Terra blockchain, which was resurrected after the token crash that resulted in a loss of $60 billion in value, is called LUNA. Fraud investigations of blockchain developer Terraform Labs and its founder Do Kwon followed the collapse. The Luna Classic (LUNC) currency and its stablecoin USTC are hosted on the old blockchain, now known as its Classic version.
Terran LUNC surprising rise
Risky investments such as cryptocurrencies appear to be rising on Friday in a largely relief rally as several economic indicators point to a slowdown in the global economy and traders consider the possibility that the Federal Reserve may slow rate hikes earlier than expected or even cut rates next year.
Traders got excited about the new burning program, which would reduce the inflated supply of the token, which has also caused LUNC to rise. Since then, the rise has stalled a bit, as the coin’s value has fallen by 17% in the last day.
Crypto market watchers are confused by LUNA’s erratic price movement, as there has been no network-specific news or development to spark excitement among retail traders.
Data from LunarCrush, a social asset analytics platform for digital assets, shows that the recent surge in social media mentions and engagements is indicative of speculative frenzy in retail.
The currency’s new blockchain has so far had trouble attracting investors to its ecosystem. According to DeFi data tracker DeFiLlama, total network value locked (TVL), a key metric in decentralized finance (DeFi) that measures how much value a protocol can collect from investors, was a pitiful $51 million at press time. In contrast, the TVL of the “old” Terra Classic blockchain reached over $20 billion in May before collapsing.