Terra Classic (LUNC) has experienced sustained declines since the network collapse in 2022. These declines have varied from price to network price. Total value locked (TVL). And even as community members scramble to try to restore it to its past glory, the numbers point to a low chance of recovery.
Terra Classic TVL drops to all-time low
After Terra’s crash in 2022, the network lost a significant portion of its TVL as investors withdrew their funds and as developers moved their decentralized applications and protocols to other networks. Over time, there seemed to be a stable trend, but once again the network has lost out to its better counterparts.
Data from the on-chain tracker DeFiLlama shows that the total Terra Classic (LUNC) TVL is $2.11 million as of Thursday. This is notable as this is the lowest the network’s TVL has ever been. It’s also still a long way from its all-time high of more than $20 billion TVL of the Terra blockchain before its tragic collapse.
LUNC TVL falls to new all-time low | Source: DeFiLlama
The vast majority of its meager TVL is split between just two DeFi protocols: Terraswap and Astroport Classic, with $1.07 million and $933,527 worth of TVL, respectively. Terra’s highest TVL in 2023 was $12 million in April 2023.
Terra’s TVL is now down more than 83% from its 2023 peaks. In the same vein, DeFiLlama shows $0 decentralized exchange (DEX) volumes in the past weekmeaning that trading activity on the network has come to a standstill.
The road to recovery for LUNC
Over the past year, the Terra community has consistently tried to help restore the network. However, the kind of decline the cryptocurrency suffered as a result of the crash is not easy and almost impossible to recover from.
Taking into account that the activities of the network are almost non-existent, the chances of recovery have become even smaller. But perhaps the biggest impediment to its recovery is the fact that LUNC’s supply has risen to over 6 trillion coins. Given this, even a rise to the $1 mark is out of reach for the token unless there is a significant reduction in supply.
The price of LUNC continues to struggle right now and is trading at $0.00007746 at the time of writing. Its market cap currently stands at $450 million, making it the 80th largest cryptocurrency by market capitalization.
LUNC price trading over 99% below all-time high | Source: LUNCUSDT on Tradingview.com