LUNC gains 60% in 24 hours; investor confidence restored?

In an apparent indication of renewed investor confidence in a project that cost investors more than $60 billion in May this year, Terra Classic, the original token of the legacy Terra blockchain has gained almost 62% over the course of of the last 24 hours.

LUNC is currently trading at 0.000267, a gain of 62% from the previous day.

Reasons for Terra Classic (LUNC) Price Rise

There are several causes for the dramatic increase in the price of LUNC due to the high volatility in the cryptocurrency market.

However, LUNC’s V22 network upgrade may be a probable cause for this price increase.

The developers of TerraClassic have just launched a new network update which, if authorized, will allow investors to immediately buy a stake in LUNC.

A staking feature added to the blockchain in the V22 release is seen as the crucial spark that will help LUNC outgrow prolonged consolidation.

According to reports, around 69% of people voted.

The delayed project will receive a much-needed boost if the vote is favorable and approved.

Interestingly, Binance, the largest cryptocurrency exchange by volume, said last month that it would help the network upgrade by temporarily limiting deposits and withdrawals until the upgrade is complete. .

This may have contributed to the increased symbolic price and positive mood, as it was in line with the wishes of the Terra community.

Launch of the governance alert bot

After announcing the launch of a new governance alert bot on Monday, August 29, Terra’s price began to climb, giving the start of this week a favorable rating.

Terra said the Governance Alert Bot will notify the community of all governance-related activities (LUNA).

Following this announcement, the price of LUNA increased by 8% at one point that day with a trading volume of over 45%.

Currently, Binance, OKX, Bybit, BingX, and MEXC are the crypto exchanges that allow trading in Terra Classic.

Currently, the global crypto market cap stands at $970.16 billion, down 2.19% from the previous day.

Dreams shattered, hopes lost

The former Terra Luna blockchain network collapsed in May this year, following the withdrawal of the stablecoin TerraUSD (UST).

In early May, the algorithmic stablecoin lost its peg, and UST’s reliance on the LUNA token, compounded the latter’s collapse, causing investors billions of dollars in losses.

Regulators around the world have increased scrutiny of the cryptocurrency industry following the removal of the UST and the subsequent collapse of the LUNA coin.

Regulators have demanded deeper reviews of projects and that stablecoin issuers disclose details of their stablecoin reserves to protect investors who partake in these assets from unforeseen events.

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