- Terra Classic (LUNC) has seen a surge in trading volume, sparking speculation of a major price increase, with analysts eyeing a 600% gain and Binance continuing its token burns to reduce supply.
- However, the broader market remains bearish, and debates over a proposed burn tax hike highlight concerns about network activity and long-term sustainability.
Terra Classic (LUNC) has recently witnessed a significant spike in trading volume, fueling speculation of a major price surge. Crypto analysts and investors are closely watching the market, with some predicting gains of over 600%. While excitement is growing, questions remain about whether LUNC can sustain long-term momentum.
LUNC Trading Volume Breakout Raises Hopes
Market analysts have identified a breakout in LUNC’s trading volume, which could signal a major price movement ahead. Javon Marks, a well-known crypto analyst, has set a price target of $0.0004295 for LUNC, an increase of over 600% from its current levels. This has sparked optimism among investors who believe the recent trading activity could be an early indicator of a potential bull run.
However, despite LUNC’s growing volume, the broader cryptocurrency market remains bearish. Bitcoin and other altcoins are struggling, with many hitting monthly lows. This overall negative market sentiment could impact LUNC’s ability to sustain its current momentum. Additionally, LUNC’s price movement appears to be primarily driven by speculative trading rather than strong fundamentals.
Binance’s Token Burn Adds to the Optimism
One of the key factors fueling bullish sentiment around LUNC is Binance’s consistent token burns. In its latest monthly burn cycle, Binance removed 522 million LUNC from circulation. The exchange has been carrying out these burns for over two years, with total burns now surpassing 70 billion tokens.
Reducing the circulating supply through token burns is a common strategy to create scarcity and drive up prices. If LUNC continues to see aggressive burning, it could potentially support higher price levels over time.
The Community Debates a Burn Tax Increase
Another major development within the Terra Classic ecosystem is the ongoing vote to increase the burn tax from 0.5% to 1.5%. The proposal aims to accelerate token burns and strengthen the community pool that funds development initiatives.
While some members of the community support the increase, believing it will enhance LUNC’s long-term prospects, others argue that it could discourage on-chain activity. The voting results so far show a divided opinion:
- 43% support the tax increase.
- 16% oppose it.
- 40% are in favor of vetoing the proposal.
If the proposal passes, the tax hike would only be temporary until LUNC’s circulating supply is reduced to 10 billion tokens. However, concerns remain about its impact on transaction costs and network usage.
Can LUNC Regain Its Former Highs?
LUNC’s potential to reclaim its all-time high of $119 remains highly uncertain. For this to happen, analysts suggest that the supply must be drastically reduced. Currently, LUNC has a circulating supply of approximately 5.4 trillion tokens, compared to just 340 million during its peak.
To reach $119 again, LUNC would require a market capitalization exceeding $600 trillion—an unrealistic figure in the current crypto landscape. That said, some traders believe that LUNC could still see short-term gains, potentially reaching $0.0002 to $0.001 if burn rates accelerate and market conditions improve.
Cautious Approach is Best
While the recent volume spike and Binance’s continued token burns offer hope for LUNC’s recovery, the broader market remains uncertain. Speculative trading is driving the price action, and investors should exercise caution. The outcome of the burn tax vote and the overall market sentiment will play a crucial role in determining LUNC’s future trajectory.
For now, traders and long-term holders will be watching closely to see if LUNC can turn this momentum into sustained growth.