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- Terra Classic has printed a dramatic rebound in its staking ratio.
- LUNC price is in uncharted territories with hopes of a sustained recovery as well.
Recently, Terra Classic’s native token, LUNC, experienced a remarkable rebound as the token’s staking ratio surged after a brief downturn that caused concerns among investors and stakers.
LUNC’s Price Dip and Unstaking Panic
Last week, Terra Classic faced a double-digit decline, with LUNC dropping more than 22% in the past seven days, according to CoinMarketCap. This decline led to a wave of unstaking as investors, fearing further losses, withdrew their LUNC tokens. Consequently, the staking ratio plummeted to 14%. With this development, the community was apprehensive about the future of LUNC.
Contrary to the initial drop, Terra Classic’s fortunes took a positive turn, with the staking ratio rebounding and approaching the 15% mark. At the time of writing, over 1 trillion LUNC tokens are staked, indicating renewed interest in staking. The slight recovery in LUNC’s price and the stabilization of its bearish momentum contributed to this resurgence.
As of now, Terra Classic is up 1.8% in 24 hours and is trading at $0.00009417, showing signs of recovery. The market capitalization stands at over $545 million, making it the 103rd largest cryptocurrency. Despite the recent challenges, LUNC’s trading volume in the last 24 hours came in at only $36 million.
To gauge the potential for a sustained recovery, recent analysis considered various factors. LUNC’s social volume surged sharply on Jan 25, coinciding with a slight price increase. This led to an increase in bullish sentiment, as reflected in the rising weighted sentiment. The Relative Strength Index (RSI) and Money Flow Index (MFI) heading towards the oversold zone suggest a potential increase in buying pressure, which could drive the price higher.
Community Optimism and Upgrades Beyond Terra Classic Staking
Despite some bearish indicators, the Terra Classic community remains optimistic about LUNC’s future.
Ongoing efforts to burn LUNC tokens and introduce upgrades for enhanced usability and demand are underway. Speculations even suggest a potential return to a $1 price tag. The commitment to project development is evident, and several upgrades are already in progress, painting a positive picture for LUNC’s future.
The recent approval of the Ethereum Virtual Machine (EVM) proposal is a notable milestone for the Terra Luna Classic community. This integration provides greater flexibility to the Terra Classic chain, allowing it to adapt to emerging technologies in the crypto space.
The adoption of the EVM, a well-established standard overseeing more than 910 different chains since 2013, positions Terra Classic as a robust blockchain platform.
This integration aims to boost the chain’s processing capacity, enabling it to handle a greater number of simultaneous transactions efficiently. The crypto community is anticipating a potential rally in LUNC prices as a result of this strategic move.
While Terra Classic was on its path to recovery, its sister token, Terra (LUNA), had already marked a sustained growth outlook. Currently, LUNA is trading at $0.587, with market capitalization pegged at $376 million.
