Journalist
Posted:
- Terra Classic will be the minting and re-minting its Terra Classic USD (USTC) stablecoin.
- The proposal was an attempt to restore the currency’s peg to the US dollar.
Members of the Terra Classic [LUNC] management community voted in favor proposal to stop all minting and reminting of Terra Classic USD (USTC) in an effort to restore the stablecoin’s peg to the dollar.
How much are 1,10,100 LUNCs worth today?
Before Terra’s collapse in May 2022, the blockchain network allowed its users to easily switch between USTC and LUNA. However, when the network collapsed and the stablecoin lost its peg, the system began minting LUNA coins in an attempt to restore the peg.
The more LUNA tokens were minted, the more the price of LUNA fell. This caused USTC’s value to drop further from $1.
As contained in the proposal, members of the Terra Classic community were encouraged to actively participate in burning the USTC tokens to facilitate the repegging process.
At the time of writing, the “stablecoin” was trading at $0.012, data from CoinMarketCap showed.
LUNC is gaining traction
With many expecting this move to help USTC get back to its $1 level, LUNC has seen increased demand over the past week. At the time of writing, the value of the coin has increased by almost 10% in the past week.
Accumulation has increased among spot traders. Key momentum indicators assessed within a 24-hour period pointed to an impending overbought high. LUNC’s Relative Strength Index (RSI) was 52.39, while the Money Flow Index (MFI) was 75.62. At these positions, LUNC accumulation exceeded distribution.
Indications of the coin’s Exponential Moving Average (EMA) confirmed the bullish trend on the LUNC daily market. At the time of writing, the 20 EMA (blue) was below the 50 EMA (orange), indicating that buyers have forced sellers out of market control.
Realistic or not, here is LUNC’s market cap in BTC terms
The coin’s Directional Movement Index (DMI) lent credibility to the above position, with the positive directional indicator (green) resting above the negative directional indicator (red) at the time of pressing. This indicated that among the coin’s daily traders, the power of buyers was greater than that of sellers.
Source: LUNC/USDT on Trading View
Futures traders want to join in on the fun
As the value of LUNC rose in recent days, the number of open transactions involving the coin began to increase, data from Mint glass showed. Worth $4.46 million at the time of writing, LUNC Open Interest has grown by over 30% over the past two days.
Source: Coinglass