Terra Classic regains $1B market cap following Boxing Day surge

Hull Invest

Terra Classic (LUNC) surged on Boxing Day, surpassing $1 billion market cap.

The local market cap trough on December 21st was $763 million. Since then, buying activity has led to an upward trend, accelerating to a sharp near-vertical move on December 26th.

The spike peaked at $1.09 billion and the profit-taking lowered the valuation slightly to $1.07 billion at the time of writing.

Over the past few weeks, Terra Classic’s market cap has bounced above and below the $1 billion threshold level several times. The last time he fell below $1 billion was on December 7th.

Terra Classic

An accompanying analysis of Terra Classic token price trends showed that Boxing Day price action decisively broke the six-week downtrend.

The following day, December 27, the bulls pushed the price to $0.00018775, a 25-day high.

Terra Classic daily chart
Source: LUNCUSDT on

However, zooming out, LUNC is still in a macro downtrend, May.

Following UST’s de-pegging and subsequent implosion of the Terra ecosystem, the community accepted a proposal from founder Do Kwon to revive the chain.

As a result, Terra Chain hard-forked into two different chains, Terra Classic, which uses Luna Classic (LUNC) tokens, which is said to be community-driven, and Terra 2.0, which uses LUNA tokens.

new proposal on the table

Back in September, LUNC had surged behind a proposal to revive the chain and regain its former position. This included token burning and attractive staking rewards.

The market cap valuation has been raised from $258 million to $3.3 billion, about 12 times more than Terra 2.0.

Three months later, following the demise of FTX, Terra Classic’s revival ambitions stalled amid the broader market downtrend. Now, his $1.07 billion market cap is just over five times the size of Terra 2.0’s. $180.9 million evaluation.

To revive LUNC’s revival, an Associate Professor of Computer Science at Drexel University Edward KimMr. who is currently involved in chain development introduced us Proposition 11168 – Joint L1 Task Force.

Kim It asked for funds to pay developers to “complete the necessary updates to upgrade and stabilize the L1 layer.”

Budget constraints limit us from adopting the same structure as before the collapse, but Kim says that two full-time and two part-time developers will be able to work within the proposed three-month timescale. said that the necessary improvements could be practicably achieved within

“At the height of Terra, Terraform Labs had a team of six to eight senior L1 blockchain developers. This level of support allows developers to focus on innovation in addition to security and maintenance. “

Posted In: Terra, Analysis

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