Terra Classic (LUNC) experienced a significant sell-off, losing nearly two-thirds of its value since December 2023, yet it remains among the top 100 cryptocurrencies by market capitalization. As of January 23, LUNC’s market cap was at $525.74 million, trading at $0.0000908, marking a $200 million decrease within a week from its previous $727.11 million valuation on January 16.
The cryptocurrency reached its peak market value of $1.5 billion on December 4 during a bull run amidst a general enthusiasm for altcoins. However, this was short-lived as LUNC soon encountered a significant sell-off.
Adding to the uncertainty, Terraform Labs, the creator of TerraUSD, declared bankruptcy under Chapter 11 in the U.S. The Singapore-based company cited assets and debts ranging between $100 to $500 million for its bankruptcy filing in Delaware. This development could impact the Terra Classic ecosystem and investor confidence in LUNC, especially as the overall crypto market is in decline.
During the same period, LUNA, another cryptocurrency, lost over half of its market value, currently trading at $0.5706 with a market cap of $363.61 million, ranked 130th. Both cryptocurrencies face an uncertain future, with no guarantee of regaining strength amidst another significant public relations issue.
With LUNC’s price potentially continuing to fall, the community calls for buying the dip, while investors are advised to proceed with caution.