Though noted for its long-term volatility and for failing to participate in the 2024 bull market since early March, Terra Classic (LUNC) has made great strides in recent weeks.
Specifically, the project, which was continued by its community after Terraform Labs (TFL) collapsed in 2022, shows a 19.75% surge to LUNC’s press time price of $0.0001546 in the last 24 hours, and the 30-day chart is even more impressive, demonstrating that the token is up 89.80%.
Why did LUNC rally 80% in 30 days
Such performance is not particularly surprising, given the good news associated with Terra Classic that emerged in recent months and the overall cryptocurrency market sentiment.
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To begin with, Terraform Labs received court permission for its bankruptcy plan, with the Securities and Exchange Commission (SEC) agreeing to be paid only after creditors’ cryptocurrency claims are satisfied. The resolution fell in line with expectations, as evidenced by LUNC’s 5% climb in the 24 hours that preceded the hearing.
Additionally, the price action has likely been driven by a massive deflationary move – the biggest burn in LUNC’s history – recorded in early November. The 137 billion token burn came shortly after the team announced the closure of the Shuttle Bridge interface and the elimination of all remaining cryptocurrency in the associated wallets.
More broadly, numerous digital assets have recently entered into a frenzy as Donald Trump’s re-election – and the confirmation SEC Chair Gary Gensler will resign on January 20, 2025 – sent Bitcoin (BTC) toward $100,000 and Ethereum (ETH) above $3,500.
The developments also enabled other prominent cryptocurrencies – long depressed by regulatory and similar issues – to skyrocket, with XRP, arguably the star of the current phase of the bull market, surging 403.20% in the last month.
Can LUNC make a massive comeback in 2025?
Despite the current momentum – and despite deflationary measures implemented by the Terra Classic team – LUNC’s rally remains fraught.
The token is well-known for its volatility, and the network’s staking and minting mechanisms remain a concern.
Furthermore, Terra Classic’s association with one of the highest-profile cryptocurrency scandals and the collapse that, arguably, triggered the ‘crypto winter,’ means that the ongoing rally is probably more a sign of the broader digital assets optimism and the euphoria from the bankruptcy finally winding down than a show of confidence in LUNC’s future.
Featured image via Shutterstock
