Terra Luna Classic is making significant progress in its efforts to restore the value of USTC, its stablecoin. The community is actively working on a plan to bring USTC back to its original value, which could be a major step forward for the Terra Luna Classic ecosystem. This initiative aims to regain trust and stability, making USTC a reliable asset once again.
How has the Terra Luna Classic (LUNC) Price Moved Recently?
LUNC is currently priced at $0.00007743, with a 24-hour trading volume of $9.35 million, a market cap of $448.51 million, and a market dominance of 0.02%. Over the past 24 hours, the LUNC price has seen a slight increase of 0.02%.
The all-time high for Terra Classic was $119.01 on April 5, 2022, while its all-time low was $0.00001651 on May 13, 2022. Since reaching its ATH, the lowest price recorded was $0.00001651 (cycle low), and the highest price since then was $0.00059 (cycle high). Currently, the price prediction sentiment for Terra Classic is neutral, and the Fear & Greed Index is at 31, indicating a level of "Fear."
Terra Classic's circulating supply stands at 5.79 trillion LUNC, with a maximum supply of 6.88 trillion LUNC. The annual supply inflation rate is -0.31%, meaning that 17.87 billion LUNC were removed from circulation in the past year.
Terra Luna Classic Moves to Repeg USTC: What does this mean?
The Terra Luna Classic community has kicked off discussions on developing a robust system to re-establish the USTC algorithmic stablecoin's $1 peg. With a growing sense of urgency, the community is doubling down on efforts to revive LUNC and restore USTC's value. An initial bounty of $250,000 has been proposed to reward the development of an ideal re-pegging mechanism, with the potential to increase the prize to over $1 million.
To achieve the goal of stabilizing USTC at its intended value, the community is offering a $250,000 reward to the developer or team that can create a reliable solution. A detailed proposal has been outlined, covering the necessary steps, requirements, and expectations for this critical initiative.
As community member NB_Crypto stated, "The main objective is to design, develop, and implement a system that ensures USTC holds its peg to the USD without repeating the mistakes that led to the previous de-pegging."
The proposed system must meet essential criteria, including stability, security, transparency, decentralization, economic incentives, scalability, and interoperability. The aim is to build a secure, stable, open-source decentralized system that not only sustains the USTC peg but also provides strong monetary incentives, high throughput, and interoperability features.
Will LUNC Price Explode?
While Terra Luna Classic (LUNC) has seen a 23% price increase over the past year, its overall performance remains mixed. Despite this gain, LUNC has been outpaced by 63% of the top 100 crypto assets and continues to underperform compared to giants like Bitcoin and Ethereum. Additionally, LUNC is currently trading below its 200-day simple moving average, which often signals bearish sentiment in the market.
The fact that LUNC is down 100% from its all-time high, coupled with only 11 green trading days in the last 30 days (just 37%), suggests that the momentum for a significant price surge might not be strong.
Moreover, while the negative yearly inflation rate of -0.31% shows that the supply is contracting slightly, this alone may not be enough to drive a massive price increase.
Given its medium liquidity and the broader market context, a price explosion for LUNC seems unlikely in the short term. However, with ongoing community efforts to stabilize and re-peg USTC, there could be a foundation for more substantial price movements in the future if these efforts succeed. For now, the price outlook remains cautious, with the potential for growth tied closely to the success of these strategic initiatives.
If the Terra Luna Classic community successfully develops a system to re-establish USTC's $1 peg, it could significantly boost confidence in the project, potentially increasing the value of both USTC and LUNC. The initiative shows the community's commitment to fixing past issues, which might attract more investors and strengthen the ecosystem.
However, the success of this effort will depend on the system's ability to maintain stability and avoid previous mistakes. If it works as planned, it could lead to a more stable and valuable Terra Luna Classic network.
