Despite recent efforts to align the rebranded cryptocurrency of the Terra (LUNA) ecosystem, Terra Classic (LUNC), with other crypto projects and blockchains, the total value locked (TVL) of the network has been continuously decreasing. According to the latest data from the decentralized finance (DeFi) analytics platform DefiLlama, Terra Classic recently reached its lowest TVL levels since its launch, with only about $2.11 million in staking value at the time of writing.
Decline in LUNC TVL!
Compared to the data on August 9, the TVL of the underlying blockchain reached $20.49 billion in May 2022. However, it significantly declined due to the collapse of LUNA and TerraUSD (UST), as well as the inability to keep up with mass withdrawals. The staking value has dropped by 63.87% this year alone.
The current TVL of Terra Classic is significantly lower than other leading crypto assets, including Solana (SOL) with over $300 million in staking value (which is 150 times higher than Terra’s). Additionally, Terra Classic was trading at a price of $0.000078, recording a 1.11% increase in the last 24 hours despite a 2.32% decrease in the past week and a 3.78% decrease in the monthly chart, according to the latest data.
Impacts of LUNC Developments!
However, in July, Terra Classic’s core developer group, the Common L1 Task Force (L1TF), shared plans to reduce the circulating supply of LUNC and the stable cryptocurrency TerraClassic (USTC) through the restoration of burned LUNC by validators.
During the same period, Binance, the world’s largest crypto exchange by volume, announced its support for the Terra network upgrade, with CEO Changpeng Zhao stating that the crypto trading platform had invested $3 million in Terra in 2018 and had not touched LUNC assets since then. In late June, an anonymous group of blockchain developers known as the “Six Samurai” published a proposal to facilitate the “real revival” of the Terra ecosystem and help the chain reach its deserved position.
