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LUNA Classic was once one of the most sought-after cryptocurrencies in the market. We admit that even we were bullish about it at one point. But all of that changed when the Terra crash brought the chilly winds of crypto winter. However, the devs behind this once-failed project are not willing to let go. LUNA classic has pumped by 70%. So, what’s with the sudden fascination with LUNC? Why is LUNC pumping? Is it making a comeback, or it’s just another temporary wishful thinking? Let us find out.
A Brief History of Luna Classic
After the Terra troubles began and practically started to pull the entire crypto ecosystem, Do Kwon stepped up to create a fork of the original chain Terra LUNA that the community accepted. And when the first genesis block was launched on May 28, many LUNA apologists started to make big gains.
At the same time, the existing Terra chain was rebranded as LUNA Classic. It has the original code of the old Terra ecosystem. Furthermore, there were those who still thought that the original LUNA was redeemable, the devs handed over the reins of LUNC to the community.
Transforming into a community-led crypto project didn’t do much well for LUNA classic, as people still remember the original blunder. Furthermore, many crypto trading platforms that ended up listing the classic version did display a warning that the token would be removed if it started to show a downtrend.
But those early days are sharply different because, as of now, the LUNC price has pumped by 70%.
Why is LUNA Classic Pumping?
While many can brush off this sudden rally as the crowd is giving LUNC another chance, LUNC has done something to warrant this rise. Recently, the LUNC token staking went live with the LUNC V22 upgrade.
Supply and staking of LUNC
Total: 6,904,261,205,445
Staked: 402,024,010,299
Staked/Total: 5.823 %2022-08-30 12:20 UTC#LUNC #USTC #UST$LUNC $USTC $UST
— LUNC staking (@LuncStaking_Bot) August 30, 2022
And as you can see, a total of 402 billion tokens have been staked. While it is a massive number, note that it is only 6% of the initial supply.
Going hyper-inflation after hitting the death spiral is why LUNA fell in May. It was all triggered when the algorithmic generated Stablecoin – Terra UST – depegged by 37% in one day after investors started to withdraw their assets. This depegging prompted LUNA to go into an inflation mode to make up for all the losses. But the higher the LUNA coin count became, the more desperate original investors grew and started to withdraw. In the end, LUNA and TerraUST both collapsed into oblivion.
The staking of Terra LUNA went live on August 27, and according to @LuncStaking_Bot, the official LUNA staking channel, over 2.6% of the total supply of the tokens was staked that day.
What are the benefits of LUNA Staking?
Many crypto holders are still not completely on board with this idea of staking. However, the rewards staking rewards are high. According to StakingRewards, staking LUNA Classic lets users earn up to 37.8% Annual Percentage Yield (APY).
It is among the highest staking pay-outs in the market, suitable especially in times when the liquidity is tight.
So, does that mean it is time to give Tamadoge another chance, or are you better of putting your efforts into another crypto?
The answer is subjective to you. If you’re one of the original LUNA holders who held it long enough not to go through the “burn LUNA” phase, now might be the chance to capitalize on it.
The APY rewards are high, no lie, but we are yet to see the token making significant returns in the market. That said, the token’s value is on the rise. After experiencing the recent 70% pump, the price of LUNA classic has seen another 15.505 upticks. While that’s not enough for us to establish an uptrend for this token, it is enough to make the crypto-crowd look at this crypto in a new light.
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