Terra Classic (LUNC), the original chain of the defunct Terra (LUNA) ecosystem, has lost momentum during the last week, which saw the asset recover despite the overall cryptocurrency market trading in the red zone.
After a surge since August, LUNC is seeing a continuous capital drain as speculators speculate if the token would stage another rally.
According to CoinMarketCap statistics, as of October 25, LUNC’s market value was $1.53 billion, a $100 million decrease from the $1.63 billion reported on October 18.
During the last week, the selling pressure on LUNC has had an influence on the token’s price by developing a negative momentum. At the time of publication, the token was valued at $0.00023, a decline of nearly 11% in a week.
After weeks of continuous rise fueled by activities such as community short squeezes, interest in LUNC has seen a precipitous decline. It is possible to claim that the consequences of the broader market are catching up with LUNC now that investors have withdrawn their profits.
LUNC’s sales pressure has also coincided with the continuing conflict between South Korean authorities and Terra’s founder, Do Kwon. Authorities assert that Kwon, who is on the run and for whom an arrest warrant has been issued is responsible for the fall.
Nonetheless, the decline is not unexpected, given that the May collapse diminished the likelihood of the Terra biosphere ever achieving its full capacity. However, the token still controls a considerable amount of wealth, and a portion of the community believes Terra can be salvaged since it is a worthwhile enterprise.
Notably, the LUNC was predicted to fail, yet it continues to draw investor interest due to reasons such as endorsement from large cryptocurrency exchanges. Concurrently, the developer community devised many strategies, such as the burn mechanism for managing supplies.