Terra LUNA has risen approximately 352% in the last 24 hours from its all-time low of $1.53 on August 29 this year.
Terra Luna price: Terra community investors have made significant purchases of Luna in response to the idea of a 1.2% tax burn on the Terra Classic (Lunc) network. Terra's tax burn strategy has received backing from major cryptocurrency exchanges.
Terra Luna's Reign! During the Friday session, Terra Luna rose to the 58th position on CoinMarketCap. The Luna token has gained more than 200% in the previous 24 hours, outperforming the overall market. Terra community investors have made significant purchases of Luna in response to the idea of a 1.2% tax burn on the Terra Classic (Lunc) network. Terra's tax burn strategy has received backing from major cryptocurrency exchanges.
At the time of writing, Luna is trading at $5.96, up 206.07% on CoinMarketCap. Its weekly upside is approximately 216.37%. The token's market capitalization exceeds $3.10 billion. The token has reached a high of $6.91 in the last 24 hours.
Terra LUNA has risen approximately 352% in the last 24 hours from its all-time low of $1.53 on August 29 this year.
Overall, the token outpaced big crypto leaders like as Bitcoin and Ethereum, which have increased by more than 9% and roughly 5%, respectively. The worldwide crypto market's worth has risen to $1.04 trillion due to widespread buying among cryptocurrencies.
Luna Classic (LUNC) has nearly doubled in the last week," said Dileep Seinberg, Founder & CEO of MuffinPay, Bill Payment & Utility Crypto. A "tax burn" regime aimed at reducing the token's oversupply is likely fuelling the surge.
Terra has gained authorization for a 1.2% tax burn on LUNC and USTC on the Terra Classic network. These recommendations are being developed in order to increase the tax parameter from 0 to 0.012 (1.2%).
The 1.2% tax, according to Terra governance, will be levied on all currency denominations now available on-chain, including LUNC and USTC.
After the request is submitted, Terra's 1.2% tax burn will go live on September 20 at the Terra Classic block height of 9,475,200.
On Friday, the Terra Classic Lunc, which joined the top 30 cryptocurrency list yesterday, was trading at $0.0004657, down 13.4%.
Huobi and BTCEX are the latest crypto exchanges to embrace Terra's 1.2% tax burn plan. MEXC Global, Kucoin, and Gate.io have also announced their support. However, Binance, the world's largest crypto exchange in terms of trade volume, has decided not to apply for Classic's tax burn plan.
Binance announced on Thursday that it would "review and change the minimum withdrawal amount, maximum withdrawal amount, and withdrawal fees for LUNC and USTC via Terra Classic network.
Binance has informed depositors that transactions would be charged by the Terra Classic network before they reach Binance. The sum will be credited to your Binance account after the network's 1.2% tax reduction.
Meanwhile, for withdrawals, Binance noted that users will receive the cash amount minus Binance's withdrawal fees and the network's 1.2% tax deduction.
In May of this year, amidst the flash crash of Terra USD and old Luna, Terraform Labs co-founder Do Kwon created Terra 2.0, under which the original Terra chain was rebranded as Terra Classic. While a new chain called Luna was developed and made available for trading under the existing name Terra.
A few months back, the talk in Terra tokens was all about USTC and old Luna's crash, which purportedly wiped off $40 billion in fortune. The panic arose in mid-May when Terra's USD lost its $1 peg. This caused both Terra sisters to tumble into a deep free fall, with old Luna tokens collapsing to zero levels. Investors, exchanges, and corporations that were early supporters of Terra USD saw their fortunes evaporate. The impact of Terras in mid-May caused a severe liquidity bottleneck, which the industry is still attempting to overcome. The tokens have been erratic since the debut of Terra 2.0, but have gained pace since last week.
It begs the question whether Terra coins' recent rising performance is the start of a promising bull run. Or perhaps a disguised bear run?
Where is Terra Tokens Headed?
According to Rajagopal Menon, Vice President of WazirX, Terra Luna Classic has been increased from 10,000 to 12,500 points per coin. In May, everyone was wondering why Terra Luna Classic was falling, if it would ever be re-pegged and if it would ever be able to stabilize the UST again. The debate then gradually switched to Terra Luna Classic vs Terra Luna 2.0, which would be superior.
"Now, the mood in the community has always been "Let's build up Terra Luna Classic, let's recreate this community, "We are the LUNAtics, We are Strong," Menon continued.
WazirX's VP stated, "Staking was re-enabled on the Terra Luna classic blockchain on August 26th, and Orion Money has officially downloaded version 22 to re-enable staking and add the burning tax. Investors are buying in expectation of the price rising from roughly 8,000 to 10,000 points per coin, and then to 12,500 points per coin today."
Seinberg noted that in the future, "Luna is still a risky trade at the moment. The new burn method will not have a substantial impact on the coin's fundamentals. Such transactions should be avoided, and only entered if a proper exit strategy is in place for both the upside and downside."
Source: @livemint.com