Terra Classic (LUNC) has seen a surge in trading volume, suggesting that notable market activity may be approaching. The rising volume has caught the attention of traders and analysts, with discussions pointing toward a possible upward price movement.
Despite rising volumes it is worth noting that the larger market still remains bearish as BTC and altcoins remains in red. Few of the altcoins have dipped to monthly lows while others seem to be dragged down by the larger market momentum.
LUNC for now is seeing a bit of speculative trading it seems. Since the fall of the project there’s only retail euphoria pushing price action. Thus, traders and investors move cautiously in LUNC’s case.
LUNC Trading Volume Sees a Notable Increase
Market observers have identified a breakout in LUNC’s trading volume, sparking speculation about potential price movements. Javon Marks, a crypto analyst, noted that LUNC’s volume breakout could lead to substantial gains.
According to Marks, a price target of $0.0004295 is in focus, representing an increase of over 600% from its current levels.
Source: X
Rexyz, another analyst, reported that Binance has burned 522 million LUNC in its monthly burn cycle. These burns reduce the circulating supply, potentially supporting price increases over time. Binance has been consistently burning LUNC for more than two years, with the total burned amount reaching over 70 billion tokens.
Furthermore, Mr. Diamondhandz1 emphasized the importance of holding and supporting the network. He highlighted that LUNC remains a key focus for long-term investors, particularly as Binance continues its burn initiative.
Community Debates Over Increasing the Burn Tax
The Terra Classic community is currently voting on a proposal to increase the burn tax from 0.5% to 1.5% . This proposal aims to accelerate token burns and strengthen the community pool, which funds development efforts within the network.
The proposal has sparked debate, as some members believe a higher tax could enhance LUNC’s long-term prospects, while others argue it may discourage on-chain activity.
Analysis of the election results so far indicates division over the issue. There are 43% supporters of the increase, 16% of the voters oppose the increase, and 40% are in favor of using their right of veto on the proposal. In case the proposed change is implemented, the increase in the tax rate would only be temporary, to be removed once LUNC is out at 10 billion tokens in circulation.
The tax increase has also been a cause of concern to both the developers and the validators. Some others are of the opinion that the transaction cost might increase, which might decrease the usage of the network, and some others believe that the change might help regulate the economy of LUNC .
The result of this particular vote will likely shape further burn rates and LUNC’s rebuilding process in the future.
Can LUNC Recover Its Former Price Levels?
The potential of LUNC to regain the value of its previous high of $119 is still under debate among traders. According to the analysts, such a price level can only be achieved through a cutting-edge reduction in supply.
Currently, the LUNC’s circulating supply is around 5.4 trillion tokens, and while it was just 340 million tokens during the highest recorded supply. To reach the value of $119, LUNC will certainly need a market capitalization of more than $600 trillion.
However, some of the traders foresee a possibility of short-term benefits despite all the hurdles with the market volatility. If the burn rates rise and the market conditions improve, it is possible to see LUNC hitting $0.0002-$0.001 after sharp surges.
Nonetheless, in a market as stagnant as the current one with price action and dwindling it would be better be act cautiously.
