After crashing earlier in May this year, Terra Classic (LUNC) seems to be getting a new lease of life. The altcoin is writing one of the best recovery stories of 2022.
LUNC has mooned by 37,000% since creating a bottom following the Terra crash. The 1.2% token burn fee applied to all transactions is one of the main causes of this explosive growth. The goal of this initiative is to help LUNC continue its recovery while transitioning to a deflationary currency.
After logging a startling 122.9% weekly rise, the token was trading at £0.00031 at press time.
The success of LUNC on the charts, however, is thanks to more than just the token burn tax initiative. For instance, there is also a proposal to give free tokens to LUNC holders. More than 19 million LUNA will be airdropped to users who didn’t receive their share last time around. Eligible users can claim their rewards by October 4, 2022.
The enormous volume that LUNC has been able to experience is an essential element of its growth. According to Santiment, the Terra Classic had the network’s highest volume since the explosion in May. LUNC trading volume hit 2.85 billion on September 6.
The token’s growth in recent months has also been significantly influenced by the rise in social volume. Its community has been especially active on Twitter.
Santiment estimates that LUNC’s social volume metric was 2906 on September 6. The momentum continued the following day as well, following which a decline ensued.
Meanwhile, Binance recently announced that deposits and withdrawals of LUNC via the Ethereum network and USTC will be suspended. This caused Terra Classic investors some stress.
Additionally, it will halt transactions on the Polygon network, Ethereum network, and BNB Smart Chain. Withdrawals and deposits will be permanently stopped as of September 7, 2022.
The news saw uncommon red flashes on LUNC’s 24-hour performance on 4 September with a 6% decline. The asset, nevertheless, quickly bounced back and went on to have a successful week.