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The rapid increase in the price of the king cryptocurrency has triggered massive gains in a portion of altcoins. However, the situation is a bit different for LUNC and USTC. Despite Terra Classic collapsing, being plundered, and losing popular applications in its ecosystem, these two tokens are achieving interesting gains. So, what are the expectations?
Analysis of USTC and LUNC
For a while now, Terra Classic (LUNC) and TerraClassicUSD (USTC) have been outperforming tokens that have been truly beneficial and promising. The most significant breaking moment in the last 1.5 years was the collapse of a stablecoin called UST (now USTC). In May 2023, the stablecoin plummeted from 1 dollar to 0.35 dollars, teaching investors how they could lose all their money while holding dollars.
Following the crash in May, there was a significant collapse in cryptocurrencies in general, and the Terra network was restarted from scratch under the name “Terra 2.0.” The new network’s token was named LUNA, while the previous LUNA token remained as Terra Classic (LUNC).
Recently, we saw Binance exchange take an important step that implies support for the Terra Classic ecosystem. Leveraged transactions were initiated for USTC. This meant two things:
- The feared delisting decision was not as imminent as thought.
- More liquidity would be directed to the Terra Classic ecosystem.
The initiation of futures trading was seen as a confirmation by Binance that the Terra Classic ecosystem could survive in the medium and long term. This stabilized the prices of USTC and LUNC.
Will USTC and LUNC Increase in Value?
In the last 7 days, the LUNC Token price has increased by over 100%. On the other hand, token burns for Terra Classic continue steadily. According to current data, more than 8.3 trillion tokens have been burned. This figure is important as it emphasizes the presence of investors who believe in the long-term future despite the still massive supply.
However, investors need to pay attention to one issue. Even though everything seems wonderful, we see that the LUNC stake rate has dropped in the last 30 days. This weakness could indicate that those seeking gains are preparing to sell.
While USTC whale interest is increasing, exchange entries are weakening. It seems that volatility will continue in the coming days. However, the long-term survival probability of these two altcoins, which have been stamped as securities, still looks quite risky.
