Terra Classic (LUNC) Surges by 19.75% Despite Reputation for Volatility

According to Finbold, Terra Classic (LUNC) has experienced a notable increase in its value, despite its reputation for long-term volatility

Terra Classic (LUNC) has seen a notable surge in its value, despite its reputation for long-term volatility and previous lack of participation in the 2024 bull market.

In recent weeks, the cryptocurrency has surged by 19.75% to reach $0.0001546 within the last 24 hours. Over the past 30 days, LUNC has seen an impressive rise of 89.80%. This performance aligns with positive developments surrounding Terra Classic and the overall sentiment in the cryptocurrency market.

Several factors have contributed to this surge. One significant factor is the recent court approval of Terraform Labs' bankruptcy plan. The Securities and Exchange Commission (SEC) agreed to receive payments only after creditors' cryptocurrency claims are settled. This resolution was anticipated, and a 5% increase in LUNC's value in the 24 hours leading up to the court hearing is likely linked to this development.

Another key event is a major deflationary move, marked by the largest token burn in LUNC's history. In early November, following the closure of the Shuttle Bridge interface and the elimination of remaining cryptocurrency in associated wallets, a total of 137 billion tokens were burned. This measure is designed to reduce the circulating supply of LUNC, potentially influencing its price.

Meanwhile, the broader cryptocurrency market has also been experiencing a surge, which can be partly attributed to political developments. Among these is Donald Trump's re-election and the announcement of SEC Chair Gary Gensler's resignation on January 20, 2025. These events have propelled Bitcoin (BTC) towards $100,000 and Ethereum (ETH) above $3,500.

Other cryptocurrencies, previously hindered by regulatory challenges, have also seen significant gains. XRP, for instance, has risen by 403.20% in the last month.

Despite the current momentum and deflationary measures taken by the Terra Classic team, LUNC's rally remains uncertain. The token is known for its volatility, and concerns persist regarding the network's staking and minting mechanisms.

Furthermore, Terra Classic's association with a major cryptocurrency scandal and the subsequent 'crypto winter' suggests that the ongoing rally may be more reflective of broader market optimism and the resolution of bankruptcy issues rather than a strong vote of confidence in LUNC's future.