Terra Classic (LUNC) rose sharply on July 17 after Binance, the world’s largest crypto exchange, announced it would support the Terra network upgrade.
According to the announcement, the upgrade will occur at the Terra block height of 5,994,365, which is expected to take place approximately at 2023-07-18 13:00 (UTC). Binance plans to suspend Terra deposits and withdrawals on July 18, until “we deem the upgraded network to be stable,” the exchange stated.
LUNC in top 5 biggest gainers of the day
Terra Classic has endured a rollercoaster journey in recent months, marked by significant price fluctuations and turbulent price action. However, in a surprising twist, the cryptocurrency has experienced a sudden and noteworthy rebound.
Namely, LUNC spiked nearly 5% on the day, making it the fourth best-performing crypto asset in terms of 24-hour price gains, behind 1inch Network (1INCH), Basic Attention Token (BAT), and Algorand (ALGO).
LUNC price analysis
At press time on July 17, LUNC was trading at $0.000096, up 4.75% in the last 24 hours.
Over the past week, the cryptocurrency gained more than 17%, adding nearly $50 million in market cap during that period.
However, LUNC remains deeply in the red territory year-to-date, down almost 35%.
Why is LUNC on the rise?
The latest price surge in LUNC was likely partially driven by Binance CEO Changpeng Zhao’s statement, in which he said that the crypto exchange poured $3 million into Terra in 2018 and has left its LUNC holdings untouched since then.
The announcement raised optimism among Terra Luna Classic enthusiasts, encouraging the community to breathe new life into the embattled crypto token.
Earlier this month, the Terra Classic core developer team Joint L1 Task Force (L1TF) provided an update for Q2 2023 and unveiled new plans for Q3.
In those plans, the developers said they were making preparations to put more focus on trimming the circulating supply of LUNC and stablecoin TerraClassicUSD (USTC) by restoring the validators-led LUNC burning process, suggesting a potential boost in the token’s price due to reduced supply.
The decreased supply typically leads to rising interest in an asset. If that happens, LUNC’s current gains could extend, with $0.0001 looking an increasingly attainable target.
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