After the collapse and re-emergence of Terra (LUNA) as LUNA 2.0, the platform’s old chain, now under Terra Classic (LUNC), is attracting tremendous interest among crypto traders.
Interest in Terra Classic is highlighted by CoinMarketCap data that shows that the token is the most searched on the platform out of all the cryptocurrencies as of June 3.
Despite more people searching for LUNC, the cryptocurrency continues to register significant price corrections. By press time, Terra Classic was trading at $0.000094, a drop of over 30% in the last seven days.
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The interest in Terra Classic might indicate that investors still believe the asset has a fighting chance in the crypto market after the Terra ecosystem collapsed as its algorithmic stablecoin de-pegged from the dollar.
LUNC receiving support from exchanges
Additionally, Terra Classic is still receiving support from several cryptocurrency exchanges. For example, the Instant crypto exchange service ChangeNOW has enabled the trading of LUNA 2.0 and LUNC.
Notably, the recovery of the Terra ecosystem began on a rough path after LUNA 2.0 suffered a massive price correction just an hour after its launch.
Although the general market is undergoing high price correction, LUNC is among the stand-out cases with extreme volatility. Analysts believe that the token’s lack of a defined fundamental value is fuelling the volatility.
With the significant interests, it can be assumed that investors searching for Terra Classic are hoping the token will transform into a meme coin as a gamble due to the lack of a use case.
It is also worth noting that the interest in the collapsed token had caught the attention of authorities like South Korea’s Financial Services Commission. The agency issued a warning to investors to desist from investing in Luna.
Finally, the Terra collapse reignited the regulation debate, with different jurisdictions enacting policies to govern the space. In South Korea, the country formed the first “Digital Assets Committee” that will be mandated with creating regulations and supervising the crypto industry.
