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 big step forward for the Terra Luna Classic ecosystem. This initiative aims to restore trust and stability and USTC once again a reliable resource.
How has the price of Terra Luna Classic (LUNC) developed recently?
LUNC current price is $0.00007743, 24-hour trading volume is $9.35 million, market cap is $448.51 million, and market dominance is 0.02%. In the last 24 hours, LUNC price is slightly up by 0.02%.
The all-time high for Terra Classic was $119.01 on April 5, 2022, while the all-time low was $0.00001651 on May 13, 2022. Since reaching the 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 “fear” level.
The circulating supply of Terra Classic is 5.79 trillion LUNC, with a maximum supply of 6.88 trillion LUNC. The annual supply inflation rate is -0.31%, which means that 17.87 billion LUNC were removed from circulation last year.
Terra Luna Classic moves to Repeg USTC: What does this mean?
The Terra Luna Classic community has begun discussions on developing a robust system to re-peg the algorithmic stablecoin USTC to $1. With a growing sense of urgency, the community is doubling down on its efforts to revive LUNC and restore the value of USTC. An initial reward of $250,000 has been proposed for developing an ideal re-peg mechanism, with the possibility of increasing the price to over $1 million.
To achieve the goal of stabilizing USTC at its intended value, the community is offering a reward of $250,000 to the developer or team that can develop a reliable solution. A detailed proposal has been prepared covering the necessary steps, requirements and expectations for this important initiative.
As community member NB_Crypto explained, “The main goal is to design, develop and implement a system that ensures that the USTC maintains its peg to the USD without repeating the mistakes that led to the previous unpeg.”
The proposed system must meet essential criteria including stability, security, transparency, decentralization, economic incentives, scalability and interoperability. The goal is to build a secure, stable, decentralized, open-source system that not only maintains the USTC peg but also provides strong financial incentives, high throughput and interoperability features.
Will the LUNC price explode?
Although Terra Luna Classic (LUNC) has seen a 23% price increase over the past year, its overall performance remains mixed. Despite this increase, LUNC has been outperformed by 63% of the top 100 crypto assets and continues to underperform compared to giants like Bitcoin and Ethereum. Furthermore, LUNC is currently trading below its 200-day simple moving average, which often indicates a bearish market sentiment.
The fact that LUNC is 100% below its all-time high and has only had 11 green trading days (just 37%) in the last 30 days suggests that momentum may not be strong enough for a significant price increase.
And although the negative inflation rate of -0.31 percent on an annual basis shows that supply is declining slightly, this alone is unlikely to be enough to trigger a massive price increase.
Given the medium liquidity and the broader market context, a price explosion for LUNC seems unlikely in the short term. However, given the ongoing community efforts to stabilize and re-peg USTC, a foundation for larger price movements in the future could be laid if these efforts are successful. For now, the price outlook remains cautious as the growth potential is closely tied to the success of these strategic initiatives.
If the Terra Luna Classic community successfully develops a system to restore USTC’s $1 peg, it could significantly increase trust in the project and potentially increase the value of USTC and LUNC. The initiative shows the community’s commitment to fixing past issues, which could attract more investors and strengthen the ecosystem.
However, the success of this effort depends on the system’s ability to maintain its stability and avoid previous failures. If it works as planned, it could result in a more stable and valuable Terra Luna Classic network.