Terras Luna Classic outperforms Bitcoin, Ethereum in last 30 days
Terra’s Luna Classic has seen a bit of a renaissance in the last week, as its value saw a significant increase following the introduction of a 1.2% incineration tax on all swaps.
The token traded as high as $0.00031131 during the week before losing some of its gains. As of press time, it is trading at $0.0002604.
Regardless, LUNC is one of the best performing cryptocurrencies in the current bear market. Since its historic implosion in May, the asset has risen over 25,000% over the past four months.
In the last 30 days alone, LUNC is up 160.5% and by almost 200% in the last 14 days.
For context, Bitcoin has lost over 13% of its value in the last 30 days, while Ethereum has lost about 4%, despite the enthusiasm surrounding the merger.
The original LUNA token saw its volume reach 7 trillion after the collapse of the Terra ecosystem. The token inflation eventually led to the collapse of its value from over $80 to less than a cent.
Since then, the developers have handed over the blockchain management to the community, who are now looking to redeem the cryptocurrency.
Prior to the new 1.2% burn mechanism, the existing burn rate has already resulted in the removal of over 3 billion tokens from circulation.
In addition, the staking mechanism on Terra has helped the price return for the token. The stake was 2.6% of the total offer on 27 August. But it has now reached 7.5%.
The 37% APY wagering rewards are the main factor that attracts more players. But these high yields have similarities to unsustainable yields that caused the collapse of the original ecosystem.
Nevertheless, many are excited about the new combustion mechanism, which goes live on 12 September. It will apply to exchange agreements on the chain and exchanges such as Binance and KuCoin.
Once the burning mechanism starts, it could burn up nearly half of the supply in a few months, depending on trading volume. However, there are many variables that will affect how effective the combustion mechanism will be.
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