Terra Luna Classic (LUNC) has observed a decrease in the staking rate that was previously on the rise in the last 24 hours. A decline in this metric usually indicates less confidence among investors who have invested in a specific token. Was the drop in price over the past few weeks the reason behind the decrease in investor confidence in LUNC?
Staking in tokens is a process where users lock their assets with a validator in order to earn rewards. Retrieving LUNC in the LUNA Classic blockchain takes 21 days, meaning that stakeholders have to wait for 21 days to withdraw their assets.
As an illuminating development, the percentage of staked LUNC has witnessed a decrease in the past 24 hours. This could imply that users are withdrawing their assets, claiming that they have low confidence in the token. At the time of writing, LUNC had a staking rate of 14.92%. This was concerning as the rate had been on the rise before the recent downward trend.
One possible reason for this situation could be the declining price trend of LUNC. Over the past month, the token has experienced significant losses, which may have encouraged stakeholders to retrieve their assets. However, the control of on-chain metrics of LUNC did not indicate a decrease in investor confidence. This can be clearly seen from the recent increase in the token’s weighted sensitivity.
However, the social volume of Terra Classic remained high, reflecting its popularity in the crypto space. Another positive news in the cryptocurrency unit was that along with its price, the token’s open interest also decreased. A decrease in open interest generally indicates a reversal of the trend. It turned out to be true as Terra Classic’s price gained momentum in the past 24 hours.
According to CoinMarketCap, LUNC increased by 1.2% in the last 24 hours. At the time of writing, it was trading at $0.00007866 with a market capitalization of over $457 million. The 4-week price volatility has also increased, increasing the likelihood of the uptrend continuing. If the price trend continues, stakeholders may continue to stake LUNC to make a profit.