- Terra Classic bulls dominated the market at the time of writing.
- USTC ownership of whales increased, but social volume decreased.
The Terra ecosystem tokens, such as Terra Classic [LUNC] And TerraClassicUSD [USTC], have shown remarkable performance in price action.
While most cryptos struggled to increase their prices, both LUNC and USTC rose double digits over the past 24 hours. What’s behind this increase?
A look at history
To understand the significance of the recent developments, it is important to turn back the clock to May 2023, when the Terra ecosystem’s stablecoin, USTC, fell in value from $1 to 35 cents.
This episode not only caused the network’s native token to plummet, but also kicked off a bear rally, which resulted in a massive drop in the global crypto market capitalization.
aIn an effort to reinvigorate the ecosystem, community voters in late May passed a proposal to launch a new blockchain called “Terra 2.0” without a stablecoin.
The original token of the new blockchain was called LUNA, while the previous LUNA token was renamed Terra Classic, LUNC.
Will the fate of Terra Classic change?
However, in the recent past, things started turning in Terra Classic’s favor. AMBCrypto reported rather that Binance [BNB]the largest crypto exchange in the world, made an announcement that gave some hope of a trend reversal.
Notably, Binance Futures launched the USD-M USTC Perpetual Contract on November 27, 2023, with up to 50x leverage.
Since then, both tokens have shown a promising bull rally. Over the past seven days, LUNC’s price has increased by more than 100%. In the last 24 hours alone, the value of the token has increased by more than 45%.
According to CoinMarketCapAt the time of writing, it was trading at $0.0002331 with a market cap of over $1.35 billion, making it the 51st largest crypto.
Another good news was that Terra Classic’s burn rate has also been increasing since the beginning of this month. To be precise, more than 8.3 trillion tokens have been burned so far as of this writing.
Source: Luncmetrics
AMBCrypto then checked LUNC’s daily chart to see what was supporting the rise. We found that, following the directions of the Bollinger Bands, LUNC‘s price was in a high volatility zone at the time of writing.
The MACD also showed a smart bullish advantage in the market. Furthermore, both the Relative Strength Index (RSI) and the Money Flow Index (MFI) had values above 90.
While these metrics were bullish, only time will tell how long the token can maintain such high numbers as these numbers could bring increased selling pressure in the coming days.
Source: TradingView
The general market confidence in Terra Classic also remained high at the time of writing. This was evident from the fact that both LUNC’s Galaxy Score and AltRank improved over the past week. Social dominance also increased by 85%.
It was interesting to see that LUNC’s market dominance increased by more than 100% last week, which could be attributed to the recent price gains.
Source: LunarCrush
While investor confidence in LUNC remained high, it was surprising that the strikers had something else on their minds. AMBCrypto looked at Luncmetrics data and found that the token’s stake ratio plummeted over the past 30 days.
At the time of printing, LUNCThe company’s stake ratio was just 14.9%, with a total of over 1 trillion LUNC tokens staked.
Source: Luncmetrics
USTC is also at the same level
Like Terra Classic, USTC also showed signs of improvement. While the stablecoin still has a long way to go to regain its $1 value, these recent developments give hope for a full recovery.
According to CoinMarketCapthe USTC has risen by more than 41% in the past seven days. At the time of writing, it was trading at $0.06548 with a market cap of over $587 million. TThese recent gains allowed the coin to regain its lost market capitalization.
The rising market capitalization was accompanied by an increase in trading volume of more than 100%, reflecting investors’ willingness to trade the coin.
AMBCrypto then checked Santiment’s data and found that investors were buying USTC at the time of the report. This was evident from the enormous drop in alternating current.
Read Terra Classics [LUNC] Price prediction 2023-24
Whales’ confidence in the stablecoin was high at press time as the supply of top addresses increased. This indicates that the whales expect the price of the coin to rise further.
However, it was surprising to see that despite such a promising increase, USTC’s social volume declined over the past seven days, as did its social dominance.
Source: Santiment