In an apparent indication of renewed investor faith in a project that cost them more than $60 billion in May 2022, Terra Classic (CRYPTO: LUNC), the original token of the old Terra blockchain, has gained nearly 62% in the last 24 hours.
LUNC is currently trading at 0.000267, a gain of 62% compared to the previous day.
Reasons Behind Terra Classic's (LUNC) Price Rise
There are several causes for the dramatic increase in LUNC's price, even with the high volatility of the cryptocurrency market.
LUNC's V22 network upgrade may be one likely reason for this price increase. This upgrade by the Terra Classic developers, if authorized, will allow investors to immediately buy a stake in LUNC.
The staking feature added to the blockchain in version V22 is thought to be the crucially important spark that will help the LUNC rise above the prolonged consolidation.
According to reports, about 69% of LUNC validators cast a ballot. The delayed project will get much-needed impetus if the vote is favorable and approved.
Interestingly, Binance, the biggest cryptocurrency exchange by volume, had said last month that it would assist the network update by temporarily restricting deposits and withdrawals until the upgrade was finished.
This may have contributed to the increase in token price and positive mood because it was in accordance with the wishes of the Terra community.
Governance Alert Bot Launch
After it announced the debut of a new Governance Alert Bot on Monday (Aug. 29), Terra's price began to climb up, starting the week on a favorable note.
Terra stated that the Governance Alert Bot will inform the community of all governance-related activity of its token LUNA.
Following this announcement, LUNA's price increased by as much as 8% at one point that day with a trading volume of over 45%.
Currently, Binance, OKX, Bybit, BingX and MEXC are the crypto exchanges that allow trading in Terra Classic.
Currently, the global crypto market cap stands at $970.16B, a decline of 2.19% compared to the previous day.
Dreams Shattered, Hopes Lost
The old Terra Luna blockchain network collapsed in May this year, following the de-peg of the TerraUSD (CRYPTO: UST) stablecoin.
Early in May, the algorithmic stablecoin lost its peg, and the dependency of UST on the LUNA token worsened the latter’s collapse, causing billions of dollars in losses to investors.
Regulators across the world have increased scrutiny over the cryptocurrency industry as a result of the de-peg of UST and the subsequent collapse of the LUNA coin.
Regulators have demanded more thorough examinations of projects and that stablecoin issuers disclose the specifics of their stablecoin reserves in order to protect investors from unanticipated events.
Photo: Praveen Nanu via Shutterstock
