Terra Classic (LUNC) Rallies 80% in 30 Days as Donald Trump's Re-election Sends Crypto Market into a Frenzy

Though noted for its long-term volatility and for failing to participate in the 2024 bull market since early March, Terra Classic (LUNC) has made great strides in recent weeks.

Terra Classic (LUNC) has notably failed to participate in the 2024 bull market, largely due to its long-term volatility. However, recent weeks have seen a 19.75% surge to LUNC’s press time price of $0.0001546.

In the last 24 hours, the 30-day chart has been even more impressive, showing that the token is up 89.80%. But what exactly caused this 80% rally in 30 days?

Several positive developments surrounding Terra Classic have emerged in recent months, which may have contributed to the token’s impressive performance.

For instance, Terraform Labs received court approval for its bankruptcy plan, with the SEC agreeing to be paid only after creditors' crypto claims are satisfied. This resolution, which aligns with expectations, saw LUNC record a 5% surge in the 24 hours leading up to the hearing.

Moreover, the price action could also be attributed to a massive deflationary move - the biggest burn in LUNC’s history - recorded in early November.

The 137 billion token burn occurred shortly after the team announced the closure of the Shuttle Bridge interface and the removal of all remaining crypto from the associated wallets.

In broader market news, numerous digital assets have recently entered a buying frenzy as Donald Trump’s re-election - and the confirmation SEC Chair Gary Gensler will resign on January 20, 2025 - sent Bitcoin (BTC) toward $100,000 and Ethereum (ETH) above $3,500.

These developments also enabled other prominent cryptocurrencies - long depressed by regulatory and similar issues - to skyrocket, with XRP, arguably the star of the current phase of the bull market, surging 403.20% in the last month.

Despite the current momentum - and despite deflationary measures implemented by the Terra Classic team - LUNC’s rally is still precarious.

The token's volatility is well-known, and the network's staking and minting mechanisms remain a concern.

Furthermore, Terra Classic's association with one of the highest-profile cryptocurrency scandals and the collapse that, arguably, triggered the ‘crypto winter,’ means that the ongoing rally is probably more a sign of the broader digital assets optimism and the euphoria from the bankruptcy finally winding down than a show of confidence in LUNC’s future.