- The price of LUNA 2.0 is down 85% since its all-time high from May 28
- Meanwhile, Terra Luna Classic (LUNC) has soared as investors hope to reap massive gains
- Over 83% of LUNC holders want to implement a systematic token burn
YEREVAN (CoinChapter.com) — Terra blockchain’s new cryptocurrency, LUNA 2.0, has failed to impress since its relaunch. After reaching an all-time high of $19.54 on May 28, the token continues to be on a downtrend.
On Thursday, the new crypto dropped an additional 25%, bringing its losses to almost 85%. At the time of writing, LUNA 2.0 exchanges hands at $2.83 per token.
Since June 8, 2022, the token has regained 45% of its losses after its price fell to an all-time low of $1.96.
Following the collapse of Terra blockchain’s stablecoin TerraUSD (UST) and its native token Terra (LUNA), Terraform Labs attempted to recover the project. It launched LUNA 2.0, distributing free tokens to holders of former LUNA tokens through an airdrop.
However, the lack of trust in the token and its founder Do Kwon, has pulled the breaks on the recovery attempts.
Meanwhile, Terraform Labs rebranded the old token as Terra Classic (LUNC).
Unlike LUNA 2.0, LUNC soars
Terra classic (LUNA) has gained renewed attraction and registered positive growth. The trade volume of the token spiked over 120% in the past 24 hours to cross the $391 million, according to data on CoinMarketCap.
After falling to an intraday low of $0.004352, the token found buyers and rose nearly 60% to attain the $0.008079 mark. However, it soon met a correction course and fell by over 23%.
At the time of writing, LUNC exchanged hands at $0.006358 per token.
With a market cap still above $400 million, LUNC is far from dead. Its low price has given new hope to crypto investors who hope to reap large gains from investments in the future.
Meme coins like Shiba Inu (SHIB) have rallied to give early buyers massive gains. So maybe LUNC can resurrect itself? At least, that is what buyers hope.
Terra Luna Classic (LUNC) burn ahead?
To help Terra Classic recover, the community has now taken matters into its hands. A new proposal to burn LUNC at a fast pace is receiving wide support from token holders.
“A Tax Burn mechanism is to be implemented on LUNC to reduce the Total Supply. Implement a Tax + Burn mechanism on each buy-sell transaction: 1.2% burn tax. This mechanism should be true until the total supply = 10 billion LUNC,”the proposal reads.
The community hopes to increase the demand and thus the price by reducing the circulating supply.
According to Terra Stake ID, over 83% of voters favor burning LUNC. If it comes to pass, Terra Classic will increase its price. That, in return, will also impact the price of LUNA 2.0.