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Here's Why LUNC Dropped to Intraday Low as USTC Rose: Details

Tue, 10/11/2022 - 13:51
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Tomiwabold Olajide
Market experienced another sell-off on October 11
Here's Why LUNC Dropped to Intraday Low as USTC Rose: Details
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The price of LUNC, the native token of the Terra Classic chain, was down 6.24% to $0.00028 at the time of publication. The market experienced another sell-off on Oct. 11 as Bitcoin remained below the $20K mark. LUNC likewise fell to an intraday low of $0.00026 on October 11.

Binance's burn turned out to be underwhelming once again. According to the results of its burn published on Oct. 10, Binance burned nearly three billion, or 2,992,563,505 LUNC worth $922,800. The amount was less than that of the previous week, when Binance burned over 5.6 billion LUNC worth $1.8 million.

On the other hand, the price of Terra Classic USD (USTC) continues its prior day's rise, wherein it surged almost 37%. At the time of publication, USTC was changing hands at $0.058, up 42.39% in the last 24 hours. Although the cause of the sudden interest is unclear, new suggestions to repeg LUNC and USTC may have contributed to it.

According to U.Today, the Terra Classic community offered a plan to restructure USTC by introducing an algorithmic fungible token called USTN. The concept encountered problems as it called for the issuance of fresh LUNC tokens.

Another repeg concept was brought forward again, this time recommending a technique without the need to mint LUNC, while taking into account the intended 10 billion maximum supply for LUNC.

Terra USTC Surges 37% in Hours as Trading Volume Spikes 1,319%, What's Happening

In May, the Terra ecosystem collapsed following the original UST stablecoin depeg. Subsequently, a new Terra chain was born with the name Terra (LUNA), and the old chain was rebranded as Terra Classic with tokens LUNC and USTC, and it now claims to be completely community owned.

According to recent sources, Do Kwon, a co-founder of Terra, will have his passport expire on Oct. 19 and, as he is now on red notice, will thereafter become an illegal overstayer.

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About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.