Investors continue to express interest in Terra Classic (LUNC), the original chain of the now collapsed Terra (LUNA) ecosystem pumping more capital into the platform. The interest in the token is growing despite the ongoing bear market and LUNC’s lack of formidable utility.
In this line, as of September 8, the LUNC market capitalization stood at $3.2 billion, growing by 1.68 billion or 101.2% from the $1.59 billion recorded on September 1, according to CoinMarketCap data.
The buying pressure has also been reflected in the price, with the asset gaining by 107% in a week with it now ranked the 24th largest cryptocurrency by market worth. By press time, LUNC was trading at $0.00055 after recording gains of over 62% in the last 24 hours.
Triggers of LUNC rally
The input by the LUNC community is an attempt to have the network regain its lost glory as users also push to shake off the scam coin status.
To achieve this goal, LUNC investors have mainly resorted to short-squeeze LUNC powered by social media campaigns. Following the collapse, some users also hope the asset will replicate the growth trajectory of memes coins like Dogecoin (DOGE) and Shiba Inu (SHIB).
At the same time, LUNC continues to receive support from different entities like cryptocurrency exchanges that continue to list the token. The support has increased following ongoing LUNC network development.
For instance, crypto exchange KuCoin announced it would support LUNC’s network’s upgrade after introducing the burning mechanism and releasing a tax roadmap. Notably, the rally has aligned with over 400 million burned LUNC tokens alongside the over 520 billion staked tokens.
Furthermore, Terra rolled out a new Governance Alert Bot that notifies the community about all governance activities on the network.
Crypto of collapsed projects rallying
Overall, the LUNC rally is following the trajectory of cryptocurrencies belonging to collapsed companies. As reported by Finbold on September 2, tokens belonging to Celsius (CEL) and the general Terra ecosystem have gained significantly, despite initial expectations that they would go to zero.
It is worth mentioning that LUNC is still showing signs of rallying after crypto exchange Binance announced it would be suspending support for Shuttle bridge. Generally, the bridge has been used by LUNC users to trade the token using the Ethereum (ETH) blockchain.
Consequently, users will be forced to leverage the Terra network, a factor that could increase transaction costs and reduce liquidity for the asset.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.