Terra Luna Classic Sees Staking Boom, Shifting LUNC Dynamics

LUNC meets the 15% staking target despite numerous setbacks, but key indicators hint at further price volatility.

Happy group of people enjoying themselfs on a Terra Luna island.
Created by Gabor Kovacs from DailyCoin
  • Terra Luna Classic’s staking vault surpasses 1T as price dip continues.
  • In mutual community and Binance efforts, 125B LUNC gets incinerated.
  • Despite crushing the milestone, LUNC succumbs to a 35% monthly dip.

The embattled Terra Luna Classic (LUNC) chain has hit an all-time staking record, now sporting a solid staking ratio of 15.03%. At 1.018 trillion LUNC coins staked, the staking fund treasury now equals approximately $69 million at the current price range.

Benefits Of 1T LUNC In Staking Vault

Terra Classic chain validators on X are marking 20% as the next checkpoint for LUNC’s staking ratio. By increasing the metric, chain supporters are looking to reduce the remaining LUNC supply in addition to the burning procedures. Ultimately, this offers long-term potential for the crypto in question, as a large chunk is locked for multiple years.

However, LUNC has faded below the $0.0001 support territory since June 17, 2024, with the global market cap slicing from $800 million three months ago to $388,198,208 as of July 8, 2024. Meanwhile, holders continue to showcase confidence in LUNC, leaning on the staking & burning mechanism’s efficiency.

What’s in Store for Terra Luna Classic?

As the crypto bears battered LUNC to a shocking 35.3% monthly deficit, the LUNC community is now looking for ways to reduce the coin’s overprinted supply. This rejuvenation plan is heavily boosted by Binance, which eliminated 62 billion tokens from circulation.

This accounts for almost 50% of all burned LUNC coins, now piling up to 125 billion LUNC. The community burn efforts cut down the supply to 5.46T; the maintained scarcity has yet to see price appreciation from LUNC. Even though the efforts didn’t bring an immediate price impact, the altcoin’s Chaikin Money Flow (CMF) spiked to 0.38 as of press time, serving as a strong money inflow signal.

In contrast, other important on-chain factors like the Relative Strength Index (RSI) pointed to an overbought condition at above 70 on the one-hour technical charts. Crypto traders should consider the coin’s forthcoming price volatility, as the widening Bollinger Bands suggest hefty price fluctuations.

As of press time, LUNC trades at $0.00007108, slightly rebounding from the weekly lows of $0.00006035. This barrier marked a new three-month low for LUNC, retracing back to the levels of October 25, 2023. As most indicators remain bearish, Terra Luna Classic’s push to $0.0001 will be likely met with severe resistance.

On the Flipside

  • Terra Luna Classic has been knocked off its course by the crypto bears since June 2024, which is highly correlated with Bitcoin’s (BTC) plunge to $55K.
  • The diminished LUNC circulating supply doesn’t necessarily guarantee a higher market value, as it depends on other factors, including social sentiment.

Why This Matters

Robust community involvement and trust in the project’s long-term value is a key trait of cryptocurrencies with longevity in the market.

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Tadas Klimasevskis

Tadas Klimaševskis is a Lithuanian journalist at DailyCoin, specializing in covering the lighter side of the crypto industry such as memecoins and pop culture in the metaverse. He has experience as a music artist, English language teacher, and freelance writer, and uses his creative writing skills to summarize valuable information in his work. He is also a strong believer in the potential of blockchain and spends his free time listening to music, traveling, and watching basketball games.