LUNC (Terra Classic) down 22.56% in the last 24 hours

Gate News Bot Message, December 12 — According to CoinMarketCap data, at the time of press, LUNC (Terra Classic) is trading at $0.00, down 22.56% in the past 24 hours, with a high of $0.000079848 and a low of $0.0000063462. The 24-hour trading volume reached $174 million. The current market cap is approximately $255 million, a decrease of about $74.37 million from yesterday.

Terra Classic is an open-source decentralized blockchain powered by Tendermint consensus and Cosmos SDK, operating independently from the original Terra network. Maintained by a diverse validator set and one of the most active communities in the crypto space, its block finalization time is about 6 seconds, with transaction fees below 1 cent.

LUNC is the native token of Terra Classic, used for paying gas fees, securing the network, and on-chain governance. Each transaction incurs a fixed 0.5% burn tax, continuously reducing the total supply, with over 10 billion LUNC tokens already burned. Holders can stake LUNC to earn annual percentage rate (APR) rewards ranging from 7% to 14%, and participate in one-vote governance on the chain.

USTC (TerraClassicUSD) was originally an algorithmic stable asset within the Terra ecosystem, designed to track the USD by balancing LUNA supply through market mechanisms. After the collapse in May 2022, the stable mechanism was suspended, and USTC decoupled and transitioned into a freely traded digital asset. Currently, USTC continues to play a role within the Terra Classic network, powering DeFi pools, paying gas fees, and serving as trading pairs on CEXs and DEXs.

The Terra Classic ecosystem now includes comprehensive DeFi products such as DEXs, L2 launchpads, NFT marketplaces, and upcoming lending protocols and synthetic asset platforms. Liquidity providers can earn double-digit APY from mining rewards. Native IBC connectivity allows LUNC, USTC, and other CW-20 tokens to directly access the broader Cosmos ecosystem, enabling one-click routing with liquidity hubs like Osmosis and Kujira.

On-chain governance is driven by LUNC stakers’ democratic voting, controlling all chain parameters. A series of Layer-1 upgrades are underway, with engineers enhancing client stability and streamlining legacy code to enable faster feature deployment and stronger security.

Recent Important News on LUNC:

1️⃣ External Policy Expectations Shift Causing Market Sentiment Volatility
This week, LUNC experienced a sharp rise followed by a decline. In early December, market participants reassessed the potential pardon of FTX founder SBF, triggering widespread buying. Between December 6 and 8, LUNC surged over 80% intraday, briefly surpassing $0.000057. However, this rally driven by external policy expectations quickly reversed, with the current decline of 22.56% reflecting a major shift in market sentiment. Such rapid fluctuations driven by external factors highlight LUNC’s high sensitivity to news and policy changes.

2️⃣ Market Enthusiasm Diminishes Temporarily, Funds Rebalance
In the past week, LUNC ranked second in market hotness on December 6, just behind Bitcoin. But as external expectations shifted, market attention quickly waned. Its market cap dropped sharply from $341 million on December 10 to the current $255 million. The 24-hour trading volume fell from a peak of $357 million to $174 million, indicating a significant decrease in market participation and a lack of sufficient buying support in the short term.

3️⃣ Fundamental Ecosystem Development and Community Governance Provide Mid- to Long-term Support
Despite short-term price pressure, Terra Classic’s ecosystem continues to advance key developments. The community is voting on important proposals related to upcoming network upgrades; simultaneously, engineers are optimizing client stability and streamlining legacy fork modules to improve network efficiency and security. The launch of new decentralized applications and ongoing protocol optimizations also continue. While these ecosystem progressions offer limited short-term price support, they lay a foundation for long-term project value recognition.

From a technical perspective, LUNC has completed a correction and broken below previous support levels, with bearish sentiment dominating the market. Investors should closely monitor whether new support can be established at lower prices and remain alert to further volatility risks driven by external expectations.

This message is not investment advice; please be aware of market volatility risks.