In an apparent indication of renewed investor faith in a project that cost investors more than $60 billion in May this year, Terra Classic, the original token of the old Terra blockchain has gained nearly 62% in the last 24 hours.
LUNC is currently trading at 0.000267, a gain of 62% compared to the previous day.
Reasons behind Terra Classic’s (LUNC) price rise
There are several causes for the dramatic increase in LUNC’s price due to the high volatility of the cryptocurrency market.
However, LUNC’s V22 network upgrade may be one likely cause of this price increase.
The TerraClassic developers just started a new network update which, if authorized, will let investors immediately buy a stake in LUNC.
A staking feature added to the blockchain in version V22 is thought to be the crucially important spark that will help the LUNC rise above the prolonged consolidation.
According to reports, about 69% of the people cast a ballot.
The delayed project will get much-needed impetus if the vote is favorable and approved.
Interestingly, Binance, the biggest cryptocurrency exchange by volumes, had said last month that it would assist the network update by temporarily restricting deposits and withdrawals until the upgrade was finished.
This may have contributed to the increase in token price and positive mood because it was in accordance with the wishes of the Terra community.
Governance Alert Bot Launch
After it announced the debut of a new Governance Alert Bot on Monday, August 29, Terra’s price began to climb up, giving the start of this week a favorable note.
Terra stated that the Governance Alert Bot will inform the community of all governance-related activity (LUNA).
Following this announcement, LUNA’s price increased by as much as 8% at one point that day with a trading volume of over 45%.
Currently, Binance, OKX, Bybit, BingX, and MEXC are the crypto exchanges that allow trading in Terra Classic.
Currently, the global crypto market cap stands at $970.16B, a decline of 2.19% compared to the previous day.
Dreams shatters, hopes lost
The old Terra Luna blockchain network collapsed in May this year, following the de-peg of the TerraUSD (UST) stablecoin.
Early in May, the algorithmic stablecoin lost its peg, and the dependency of UST on the LUNA token, worsened the latter’s collapse, causing billions of dollars in losses to investors.
Regulators across the world have increased scrutiny over the cryptocurrency industry as a result of the de-peg of UST and the subsequent collapse of the LUNA coin.
Regulators have demanded more thorough examinations of projects and that stablecoin issuers disclose the specifics of their stablecoin reserves in order to protect investors who participate in these assets from unanticipated events.
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