The Terra ecosystem started the year quite badly after what is now regarded as one of the biggest ecosystems crashes in crypto history. The price of Terra coin (LUNA) crashed from $120 to $0.02 in 48 hours, amounting to an over 99% correction on May 11th – 12th.
In August and September this year, however, things are starting to look green for Terra. Terra Classic (LUNC) especially has gained special interest from investors. In a 24-hour timeframe, its daily trading volume has jumped over $2 billion. Its price has also skyrocketed by over 70% in the same timeframe.
What Fueled Terra Classic
The simple answer is “massive community support.” Recently, the Terra community has shown special interest in the project by burning, staking, project building, ecosystem education, and governance.
As a result, the price of LUNC has gone parabolic, gaining over 70% in a day and 180% in a week. This rally has almost tripled the weekly price of the token, taking it from a low of $0.0001542 to about $0.000447.
The goal of the community seems to be pushing the price of LUNC over $0.0005. And so far, they appear to be succeeding. The daily trading volume of the token has gone north of $2 billion, with a 550% increase in trading volume.
In addition, the community has no plans to stop at $0.0005. They firmly believe that their short-term target can be reached this month, and it isn’t hard to see why. If this momentum continues until the end of the month, LUNC will break the 0.01 mark and continue its rally upwards.
Over time, the community has burned over 3.5 billion LUNC tokens and staked 52.9 billion more. Interestingly, over 400 million LUNC tokens have been burned in the last 24 hours, and about 28 billion LUNC have been staked within the same timeframe.
Future Price Action
The community’s involvement is not the only thing that has fueled this growth.
Recently, the Terra team announced several upgrades, burning, staking, and governance proposals that may have contributed to pushing the prices higher. The Terra team recently released a new “governance alert bot” that notifies community members when new governance activities get launched.
On September 12th, the 1.2% burn tax proposal will be released. This burn tax proposal will show how much LUNC tokens are burned, pushing the price upwards. Thus, the community is highly bullish on the price of LUNC.
Disclaimer: The author’s comments and recommendations are solely for educational and informative purposes. They do not represent any financial or investment advice. Always DYOR (do your own research)