According to Finbold, Terra Classic (LUNC) has experienced a notable increase in its value, despite its reputation for long-term volatility and its previous lack of participation in the 2024 bull market. In recent weeks, the cryptocurrency has surged by 19.75% to a price of $0.0001546 within the last 24 hours. Over the past 30 days, LUNC has seen an impressive rise of 89.80%. This performance aligns with positive developments surrounding Terra Classic and the overall sentiment in the cryptocurrency market.
One significant factor contributing to this surge is the recent court approval of Terraform Labs' bankruptcy plan. The Securities and Exchange Commission (SEC) agreed to receive payments only after creditors' cryptocurrency claims are settled. This resolution was anticipated, as evidenced by a 5% increase in LUNC's value in the 24 hours leading up to the court hearing. Additionally, a major deflationary move, marked by the largest token burn in LUNC's history, has likely influenced the price action. In early November, 137 billion tokens were burned following the closure of the Shuttle Bridge interface and the elimination of remaining cryptocurrency in associated wallets.
The broader cryptocurrency market has also been experiencing a surge, partly due to political developments such as Donald Trump's re-election and the announcement of SEC Chair Gary Gensler's resignation on January 20, 2025. These events have propelled Bitcoin (BTC) towards $100,000 and Ethereum (ETH) above $3,500. Other cryptocurrencies, previously hindered by regulatory challenges, have also seen significant gains, with XRP rising by 403.20% in the last month.
Despite the current momentum and deflationary measures taken by the Terra Classic team, LUNC's rally remains uncertain. The token is known for its volatility, and concerns persist regarding the network's staking and minting mechanisms. Furthermore, Terra Classic's association with a major cryptocurrency scandal and the subsequent 'crypto winter' suggests that the ongoing rally may be more reflective of broader market optimism and the resolution of bankruptcy issues rather than a strong vote of confidence in LUNC's future.
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