The Terra Classic (LUNC) community has made an important step toward its goal of stabilizing the USTC stablecoin at $1 and revitalizing the Terra Luna Classic ecosystem.
Proposal 11784, suitably titled “Stop Minting and Reminting of USTC,” has been officially approved by the community. The proposal represents a watershed moment because it symbolizes the end of all minting and reminting processes for USTC.
Binance’s Role in USTC Token Burning
One of the most significant repercussions of this judgment is the potential it provides for cryptocurrency behemoth Binance to start burning USTC tokens.
Given that the USTC minting and reminting procedures have ceased, the burning of these tokens can play an important part in assisting the Terra Luna Classic community in reestablishing the USTC stablecoin’s peg to $1.
Price Surge and Market Impact
The consequences of this idea have already begun to be seen, with the price of LUNC rising significantly. On September 22, LUNC became the top gainer among the top 100 digital assets in the crypto market, gaining 7.77% in value in a single day. This rise resulted in a $30 million increase in LUNC’s market value in less than 24 hours.
Following in the footsteps of LUNC, other cryptocurrencies such as Zilliqa (ZIL) and ApeCoin (APE) experienced gains of 6.19% and 2%, respectively, within the same 24-hour period, capturing the second and third spots among the top 100 cryptocurrencies.
Technical Analysis of LUNC
Looking at LUNC’s technical analysis, the cryptocurrency is presently trading at $0.00006124, representing a 7.38% gain for the day and a 5.74% increase over the previous week.
However, LUNC is currently trading below its 200-day simple moving average, which can indicate possible price weakness.
LUNC has only had 12 positive trading days in the last 30 days, accounting for 40% of the observed duration. Despite its recent rise, LUNC has encountered considerable problems in the past year, with its price falling by -78%. This fall has put LUNC in a competitive environment, with 96% of the top 100 cryptocurrencies outperforming it over the course of the year.