LUNC Escalates 100% in 7 Days; This is What's Happening

Terra Classic LUNC registered more than 100% gain in the last 7 days, making it the top gainers of August.
LUNC’s price has shot up by more than 250% month-to-date.

Terra Classic(LUNC) was in a do-or-die situation after the massive Terra crash that left investors losing their life savings as well as their faith in the cryptocurrency back in May.

Terra classic (LUNC) investors could be heading off to a bull party as the rebranded meme coin registered more than 100% gain in the last 7 days, making it the top gainers of August. Adding fuel to fire, the coin’s price shot up by more than 250% month-to-date reaching $0.0005202 with a market cap of $3,210,139,589 and ranking at #26 according to Coinmarketcap.

Increased Social Activity

The plunge has not only happened to LUNC’s price, People are quenching for news and updates related to LUNA on social platforms. LUNC-related keywords are currently dominating the top spots of most social platforms.

Despite the skepticism, LUNC traders have ignored analysts and investors who keep ministering about the demise that the defunct Terra (LUNA) token, a $40 billion project that collapsed in May.

Staking Services on the Terra’s Chain

The Terra chain started offering Staking services on August 27, serving as the first major sign behind the current LUNC price rally. A post made by LuncStaking_Bot stated that nearly 9% of Terra Classic LUNC supply has been removed from circulation. The post stated that more than 610 billion LUNC has been staked with Terra Classic against its net supply of 6.9 Trillion units.

Supply and staking of LUNC

SUPPLY
total: 6,903,660,538,201

STAKED
bonded: 533,102,702,962
unbonded: 77,003,374,763

STAKING RATIO
8.837%(bonded: 7.722%)

2022-09-08 17:30 UTC#LUNC

— LUNC staking (@LuncStaking_Bot) September 8, 2022

Data from StakingReward state that staking Terra Classic is among the highest payouts in the cryptocurrency industry where users are earning an annualized yield of 37.8% for staking the meme coin.

The high returns could have boosted the high demand in LUNC, pushing the altcoin by more than 450% since the onset of the staking process.

LUNC Token-Burning Mechanism

In addition to staking, Terra Classic developers have embraced a token-burning mechanism to reduce the number of LUNC in circulation.

Edward Kim, Terra Classic’s community member suggested imposing a 1.2% transaction tax on LUNC on-chain transactions at the beginning of September. The aim was to remove a portion of LUNC’s supply from circulation as the proceedings would end up in dead addresses.

Terra Luna Classic (#LUNC) skyrockets >37,000% since its bottom after the Terra collapse 🤯

This comes after a proposal to implement a 1.2% token burn tax on all transactions that will enable $LUNC to become a deflationary cryptocurrency.#LUNC ✨ #HaileyLUNC ✨ $LUNC ✨ pic.twitter.com/oIxI7tqVkW

— Hailey LUNC ✳️ (@TheMoonHailey) September 7, 2022

Intriguingly, Over 3.6 Million LUNC tokens have already been eliminated from circulation according to a LUNC burning mechanism, LUNC Burner.

Oncoming Price Tornado as Risk Increases

Paradoxically, technical indicators show that LUNC’s price rally is at risk of correcting in the near future. LUNC’s daily relative strength index (RSI), crossed 90 on Sept. 8 an extremely overbought level that leads to a correction.