Why Terra Luna (LUNC) Is up More Than 60% in November
The prices of TerraUSD Classic (USTC) and Terra Luna Classic (LUNC) spiked amid positive developments for the Terra Classic (Terra) network. The increases and many transactions on the network suggested the Terra Classic ecosystem was returning to life after its 2021 collapse.
On Nov. 27, the USTC/USDT exchange rate rose 176% in 24 hours to $0.037, and by the time of writing, it had increased to $0.058. Terra Luna Classic rose almost 30% to $0.0000968 between Nov. 26 and Nov. 27, and, in the last 24 hours alone, has increased 27%.
Terra and LUNC Revived?
These positive signs appear to result from a community effort to restore the former glory of the Terra Classic ecosystem. BeInCrypto has seen other indicators that bode well for the network operation.
Read more: What Is Terra (LUNA)?
TerraClassic Foundation data reveals that the number of Terra transactions has reached a record in the past week. On Nov. 22, users initiated around 589,000 on the network, almost double the 300,000 daily average transactions for the previous month.
At the same time, the number of tokens staked on the Terra Classic network has also risen. The proportion of LUNC tokens staked had increased to 15% of the total supply by Nov. 24.
A higher number of staked tokens and increased usage point to positive sentiment from users. They suggest a revival of interest in the Terra Classic ecosystem.
Terra Still Far from Peak
However, it is worth noting that these numbers are still far from the heights they soared to at Terra’s peak. Also, any increases must be sustained for a significant period for Terra to reclaim its position in a crowded crypto ecosystem. The percentage of staked tokens has since dropped back to its trough of under 15%, as seen in mid-November.
In 2021, Terra was one of the most widely used blockchains due to the popularity of the TerraUSD stablecoin and its sister token LUNA. But the capture of Do Kwon, his runs-in with law enforcement, and the collapse of the multi-billion-dollar Terra ecosystem created two chains, Terra Classic and Terra 2.0.
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