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Recent Upgrades in the Terra Classic (LUNC) ecosystem have sparked a surge in market interest and generated a shift in price trends. Unlike its previous performance, LUNC is currently experiencing a notable upswing, with promising milestones on the horizon.
Terra Classic Upgrade Sparks Market Surge and Shifting Price Trends
During the month of April, a new project related to Terra Classic emerged, commencing the process of burning an astonishing 1.5 billion LUNC tokens within a few days.
The fundamental aim of this burn is to accelerate the reduction of the circulating supply by eliminating billions of LUNC tokens. Remarkably, this with the anniversary of the Terra-LUNA crisis, resulting in the total number of LUNC tokens burned surpassing the impressive milestone of 57 billion.
As part of its monthly procedure, Binance made a significant contribution to this burning process on May 1 by removing a staggering 1.27 billion LUNC tokens. This event led to the total amount of LUNC tokens burned reaching 55 billion, with Binance’s involvement accounting for an impressive 31.83 billion LUNC tokens.
Following the burn conducted by Binance, the rate at which LUNC tokens were being eliminated experienced a notable increase. This surge can be attributed mainly to the community’s active participation in the newly introduced DFLunc Protocol project, which has been capturing significant interest.
DFLunc Protocol, a DeFi protocol comprised of various smart contracts, has been specifically designed to decrease the supply of LUNC tokens through a continuous burn mechanism.
Additionally, DFLunc Protocol functions as a validator for Terra Classic, enabling users to mint its DFC token exclusively through the burning of LUNC tokens. This is accomplished through the utilization of two CosmWasm-based smart contracts: DFLunc and CW20-DFC. Users burn LUNC by paying USTC as protocol fees in order to mint DFC tokens.
The protocol has formulated a multi-stage plan aimed at the growth of its validator on the Terra Classic chain, further reinforcing the significance of its role.
With the continuous burning of LUNC tokens by the protocol and the community, the token supply is expected to contract significantly, consequently pushing the token’s price. With that being said, investors might have to wait for a few years to see any significant effects although the recently achieved numbers were quite noteworthy.
LUNC’s Revival Plan To Feature Network Pause and Parity Upgrade
In preparation for the upgrade of the Terra Classic network to version 2.0.1, the Joint L1 Task Force is implementing various measures.
The measures will include the integration of Cosmos SDK v0.45.13 Columbus-5 and Tendermint v0.34.24 upgrades, the establishment of a minimum initial deposit for governance proposals, and an enhanced focus on code maintainability. These actions are being undertaken alongside the ongoing token burns.
To facilitate the upgrade process, the Terra Classic blockchain will temporarily pause at block 12,812,900. This milestone is expected to occur on May 17 at 14:03 UTC.
Subsequently, on May 31, the Cosmwasm 1.1.0 Parity upgrade will take place, enabling projects and developers from both the Cosmos and Terra Luna 2.0 ecosystems to resume building on the Terra Classic chain.
While Inter Blockchain Communication (IBC) has already been established with other chains, additional developments remain as part of the Terra Classic Revival Roadmap, devised by core developer Edward Kim.
Over the last couple of days, the price of LUNC has surged by 17% at its highest, although it is currently trading at $0.00009016. During this period, the lowest recorded price was $0.00008182, while the highest reached $0.000097. Furthermore, there has been a notable increase in trading volume, indicating growing interest among traders.
Market Confidence To Control LUNC’s Price In Future
Looking at the fundamentals of LUNC isn’t the best way to assess its future performance as the project isn’t the primary focus of its original team. Following the collapse of UST, the Terra 2.0 blockchain was introduced, absorbing all the liquidity from the LUNA Classic chain.
The founder of the project, Do Kwon, is presently in custody after being apprehended in Montenegro. Essentially, there is no significant progress happening with the project that’ll particularly advance the use cases of the blockchain. Despite this, the LUNC community remains active on Twitter, displaying enthusiasm that has sustained the project’s existence.
While there was the emergence of a bear flag formation on LUNC’s daily chart recently, it did manage to reach and cross the $0.00009000 level. Although this was seen as positive news among LUNC supporters, the price plummeted to its lowest point since August 2022 before experiencing a substantial rebound.
The ongoing rebound might potentially lead to a retest of the $0.00010000 level. However, our price prediction for Terra Luna Classic will remain pessimistic until the price surpasses the $0.00001333 level on its daily chart, a scenario that appears unlikely in the near future.
With that being said, here’s our prediction for LUNC over the next few years, mentioning the possible price targets it could reach.
LUNC Price Prediction 2023, 2024 & 2025
LUNC Price Prediction 2023
The LUNC community is determined to revive the Terra Classic ecosystem, aiming to restore its previous vitality. They’re positively working towards increasing the price of LUNC token, with an aim to pull it back to the one-dollar milestone, thereby driving significant activity and implementing improvements to stabilize this particular cryptocurrency throughout the year.
By the end of 2023, the digital token could potentially attain its peak value of $0.000314 if the token continues to be aspirational. However, in the event that the project loses support from its backers, the price of a Terra Classic token might decline to $0.000255. Even then, LUNC would still be up 150% from its current level.
LUNC Price Prediction 2024
There is considerable potential for growth in the projected value of Terra Classic’s LUNC in 2024. We anticipate that the price of LUNC will surpass $0.000417 in the coming period, potentially driven by the introduction of new collaborations and activities.
However, it is advisable to exercise caution and wait for the relative strength index for LUNC to move out of the oversold zone before becoming excessively optimistic. Considering the market’s volatility, LUNC is expected to trade within the range of $0.000333 to $0.000367.
LUNC Price Prediction 2025
If the current growth rate continues to unfold as anticipated, there exists a reasonable probability that by the year 2025, the price of LUNC could ascend to approximately $0.000583.
Nevertheless, this target is contingent upon LUNC satisfying market expectations. According to estimations, the projected price range for LUNC in the year 2025 is expected to fluctuate within the approximate range of $0.000533 and $0.0005.
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