Terra Classic’s market capitalization increases by $130 million after a 20% increase in one day
Terra Classic (LUNC), the original chain of the now-defunct Terra (LUNA) coin, is seeing a spike in demand, which drives up its price. Notably, the token’s popularity seems to defy the crypto market’s continued volatility.
Specifically, LUNC has risen 21% in the previous 24 hours, trading at $0.00012 with a high of $0.00013 on August 26’s early trading hours.
According to CoinMarketCap statistics, a capital influx of around $137.7 million within 24 hours contributed to the price increase of LUNC.
Despite being labelled as scam coins, the community has been active and supportive of LUNC despite predictions that it would perish following the disputed fall. Some projects have focused on decreasing the token’s supply.
For example, the most recent surge corresponded with a new high for burnt LUNC tokens. The live LUNC burn tracker indicates that 3,080 billion tokens have been burnt to date.
“The total amount of Lunches burnt is 3,080 billion. The amount traded in the previous 24 hours is $157 million, and 1.2% of it is $1.88 million at current pricing and book,” the platform tweeted on August 25.
In general, a decline in the overall supply of LUNC will enhance scarcity and likely cause a steady price rise.
Effects of communal inadequate supply
Additionally, the most recent increase in Terra’s value may be related to short squeeze activities undertaken by the community in an effort to regain lost glory. Moreover, some experts predict that LUNC may follow in the footsteps of meme currencies such as Dogecoin (DOGE).
Notably, LUNC’s effort to rise is also tied to factors like as the token’s continued listing on key crypto exchanges, despite the absence of meaningful use cases.
Moreover, LUNC’s positive attitudes align with a recent interview with Terra’s founder Do Kwon, who continues to deny culpability in the collapse. In the interview, he alleged that the Terra group included a mole.
In this regard, authorities continue to investigate Kwon, with South Korean prosecutors requesting that the Ministry of Justice send the founder a “notice upon arrival.”
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