The rapid increase in the price of Bitcoin, the king of the cryptocurrency market, has paved the way for significant gains in some altcoins. Despite the decline, plundering, and loss of popular applications from its ecosystem, Terra Classic, LUNC and USTC tokens continue to gain interest, raising expectations.
The decline of UST (now known as USTC) stablecoin was one of the most significant events in the past 1.5 years. In May 2023, this stablecoin dropped from one dollar to 0.35 dollars, showing investors the risk of losing all their money even when holding dollars. Following this decline, there was a significant decline in cryptocurrencies in general, and Terra decided to restart from scratch under the name “Terra 2.0”. The new blockchain token was named LUNA, while the previous LUNA token remained as Terra Classic (LUNC).
Recently, we have seen an important move by the Binance exchange that can be interpreted as support for the Terra Classic ecosystem. The exchange launched leveraged trading for USTC, indicating that both the feared delisting decision was further away than expected and that more liquidity would be provided to the Terra Classic ecosystem. This move helped stabilize the prices of USTC and LUNC.
Over the past 7 days, the LUNC token price has shown an increase of over 100%. Token burning for Terra Classic continues steadily. According to current data, more than 8.3 trillion tokens have been burned. This figure emphasizes the presence of investors who believe in the long-term future, despite still having a large supply.
There is one thing investors need to pay attention to. Although everything looks great, we see that the LUNC stake ratio has dropped in the past 30 days. This weakness could be a sign that those chasing profits are preparing to sell. While whale interest in USTC is increasing, exchange entries are weakening. It appears that volatility will continue in the coming days. However, the long-term survival probability of these two altcoins, despite being labeled as securities, continues to appear quite risky.