Terra Luna Classic price has performed well this year and has continued to outperform Bitcoin (BTC), Ethereum (ETH), and top altcoins such as Ripple (XRP), Pi Network (PI), and Solana (SOL). LUNC has jumped by 460% from its November 2023 low, giving it a market capitalization of $500 million.
The token has jumped by 123% this year, while Bitcoin has dropped by 13.78%. Ethereum and Pi Network have also dropped by 30% this year, shedding billions of dollars in value.
LUNC price has performed well due to its community engagement, elevated demand, and token burns. Data compiled by CoinMarketCap shows that the token had a volume of over $83 million, up by 181% in the last 24 hours. This volume gives it a volume-to-market-cap ratio of 17%.
The same demand is happening in the futures market. Data shows that the volume and open interest metrics have soared to $31 million and $30 million, respectively.
Meanwhile, LUNC is highly deflationary, with millions of tokens being removed from the market each week. Data shows that over 367 million tokens have been burned in the last seven days. Since its inception in May 2022, over 448 billion tokens have been removed from circulation. These burns have brought the circulating supply to 5.56 trillion tokens.
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Binance has led these token burns by incinerating all the fees it collects on its platform. It has burned 84.57 billion LUNC tokens and 4.42 million USTC. The other top burner is Terra Form Labs, which was forced to incinerate tokens as part of its bankruptcy proceedings. Bitkub, DFLUNC, and LunaticsToken have also burned millions of tokens.
For starters, Terra Luna Classic is the remnant of Terra, which collapsed in May 2022. Terra offered the LUNA token, which was a top 15 coin in the crypto industry. It also owned UST, an algorithmic stablecoin that offered double-digit returns. These projects, together with Anchor Protocol, collapsed, wiping billions of dollars in value.
After its collapse, the community took over the projects and renamed them Terra Luna Classic. In the same period, Do Kwon rebranded the project to Terra 2.0.
LUNC Price Has Bullish Technicals
Technical analysis also explains why the Terra Luna Classic price has jumped this year. This rally started when it bottomed at $0.00003035 in February this year. It recently concluded its fourth phase and is now entering its fifth, which is usually bullish.
The token has moved above the lower side of the Andrews Pitchfork tool. It has remained above the 50-day and 100-day Exponential Moving Averages (EMA).
Therefore, the most likely scenario is that the coin continues to rise, potentially reaching the year-to-date high of $0.0001246. This target is about 40% above the current level.
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