Some community alerts were given on August 28, related to Terra Classic (LUNC), as investors saw 5 billion LUNC being unstacked. Raising concerns that such a massive amount of tokens could have negative effects on the price.
Although a seemingly high value, if measured in the Terra Classic token, the 5 billion accrues for only 0.1% of the circulating supply of 5.86 trillion LUNC. One of the highest circulating supplies among all other cryptocurrencies. Which should not have any meaningful impact on price, considering the current exchanged volume.
Terra Classic, formerly Terra, went through a major crisis in 2022 with the collapse of the LUNC (formerly LUNA) based stablecoin, UST. In just a few days, LUNC went from $76 to as low as $0.0001147.
Moreover, following the crash, the Terra DAO, back then majorly controlled by Do Kwon and the Luna Foundation Group (LFG) approved decisions to mint trillions more tokens, changing the whole tokenomics for the project, which continued to drop in price to as low as $0.000004123 in September 2022 — as the market was pricing the massive supply increase, according to their value perception on the Terra Classic ecosystem.
Currently, Terra Classic has around $1.57 million in total value locked (TVL) on DeFi, but LUNC continues to be valued among the top 100 cryptocurrencies by market cap, according to the CoinMarketCap Index.
LUNC price analysis
LUNC is being traded for $0.00006315 by press time, with no negative impacts from the most recent unstaking of 5 billion tokens.
Interestingly, LUNC has registered 1.11% gains in the last 24 hours, after an aggressive retrace following the unstacking news, that quickly corrected back to a small pump.
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