Thomas Daniels
This week, Terraform Labs’ two cryptocurrencies, Terra Luna Classic (LUNC) and TerraClassicUSD (USTC), have witnessed impressive surges in their values, with LUNC increasing by over 130% and USTC by more than 235%. It’s important to note that Terraform Labs, the web3 entity overseeing these altcoins, had strategically allocated $10 million across three different liquidity pools back in November, setting the stage for the current positive trends in USTC and LUNC. This demonstrates how strategic decisions can significantly influence the cryptocurrency market.
A key factor in LUNC’s notable price rise of 130% during the same period has been its burn mechanism. The recent decision by Binance to destroy over 3.9 billion LUNC tokens, which were accumulated as trading fees from the end of October to late November, played a substantial role in this upswing. The evolution of LUNC’s burn mechanism, which was originally set at 100% before being reduced to 50%, has been a critical component in its recent market performance.
In the broader context, both USTC and LUNC are experiencing remarkable growth, reflecting a positive trend in the overall crypto market. As of now, Bitcoin (BTC) is moving towards the $40k mark, leading to more than 80% of Bitcoin holders profiting, a significant achievement since December 2021. At this moment, the global cryptocurrency market capitalization is valued at $1.56 trillion, marking a 1.9% increase in the past 24 hours.
