- Terra Luna Classic’s Staking Vault Crosses 1T as Price Decline Continues
- 125 billion LUNC were burned through joint efforts of the community and Binance.
- Despite this breakthrough achievement, LUNC still saw a 35% monthly decline.
The Terra Luna Classic (LUNC) chain, which is in trouble, has achieved an all-time staking record, currently boasting a solid staking ratio of 15.03%. With 1.018 trillion LUNC coins staked, the staking fund vault is worth about $69 million at current prices.
Benefits of 1T LUNC in Staking Vault
X’s Terra Classic chain validators mark 20% as the next checkpoint for the LUNC staking ratio. By increasing this metric, chain supporters are reducing the remaining LUNC supply in addition to the burn process. Ultimately, this provides long-term potential for the cryptocurrency, as many chunks are locked for years.
However, LUNC has faded below the $0.0001 support area since June 17, 2024, and its global market cap has decreased from $800 million three months ago to $388,198,208 as of July 8, 2024. Meanwhile, holders continue to show confidence in LUNC, relying on the efficiency of its staking and burning mechanisms.
What will happen in Terra Luna Classic?
As the crypto bears hit LUNC with a shocking 35.3% monthly deficit, the LUNC community is now looking for ways to reduce the coin’s overprinted supply. This rejuvenation plan was largely supported by Binance, which removed 62 billion tokens from circulation.
This accounts for almost 50% of all burned LUNC coins, currently sitting at 125 billion LUNC. The community burn activity has reduced the supply to 5.46T, and the scarcity it maintains has yet to see a price increase for LUNC. While this activity has not had an immediate price impact, the altcoin’s Chaikin Money Flow (CMF) has surged to 0.38 by the time of writing, serving as a strong inflow signal.
In contrast, other important on-chain factors such as the Relative Strength Index (RSI) have indicated overbought conditions above 70 on the 1-hour technical chart. Crypto traders should consider the upcoming price volatility of the coin as the widening Bollinger Bands suggest huge price moves.
At the time of writing, LUNC is trading at $0.00007108, recovering slightly from its weekly low of $0.00006035. This barrier marks a new 3-month low for LUNC, retracing the levels from October 25, 2023. With most indicators still showing bearishness, a push to $0.0001 for Terra Luna Classic is likely to face serious resistance.
On the other side
- Terra Luna Classic has lost its way since June 2024 due to the cryptocurrency downtrend, which is highly correlated with Bitcoin (BTC) crashing to $55,000.
- A reduced LUNC circulating supply does not necessarily guarantee a higher market value, as this depends on other factors including social sentiment.
Why this matters
Strong community engagement and confidence in the long-term value of the project are key characteristics of a cryptocurrency that will last a long time in the market.
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