As Terraform Labs (TFL) gears up for its much-anticipated Chapter 11 bankruptcy hearing starting today, the crypto market is bracing for a potential plot twist.
Today’s hearing marks a pivotal moment for Terra Classic (LUNC), as part of its winding down process, TFL has announced plans to burn all its remaining tokens, including LUNC and USTC, by October 30, 2024.
This planned token burn is one of the key factors fueling LUNC’s recent bullish momentum. By drastically reducing the circulating supply, the burn could create scarcity, potentially driving up the value of the remaining tokens—especially if demand remains steady or increases.
With fewer tokens in circulation, the laws of scarcity could kick in, driving up the price. So, while TFL’s bankruptcy might seem like bad news on the surface, it could actually be the golden ticket LUNC has been waiting for.
LUNC price chart analysis
At the time of writing, Terra Classic is trading at $0.00008557, reflecting a 5.22% gain over the last 24 hours.
LUNC 24-hour price chart. Source: CoinMarketCap
Over the past month, LUNC has shown steady upward momentum, climbing 8.99% as anticipation builds around the upcoming token burn and the broader market recovery.
Even more impressive is its 46.84% surge over the past year, a surprising feat given the perception of crisis that has often surrounded the Terra ecosystem.
LUNC 1-year price chart. Source: Finbold
As LUNC heads into this pivotal moment, all eyes are on its price levels. Right now, the token is hovering around a key support level at $0.000085.
On the upside, there’s a resistance level at $0.00009. If the bullish momentum continues, especially with today’s hearing and the promise of a massive token burn on the horizon, we could see LUNC break through that resistance level. If it does, a new wave of FOMO (Fear of Missing Out) could send the price soaring.
Broader crypto market factors
Adding fuel to the fire, the broader market has provided a tailwind for LUNC.
The U.S. Federal Reserve’s recent decision to cut interest rates by 0.50% has created a more favorable environment for risk assets like cryptocurrencies.
As investors seek higher returns in a lower interest rate world, LUNC and other altcoins have benefited from renewed optimism in the market.
Behind the scenes, Terra Classic has been making technical strides. The recent v.3.1.5 upgrade has enhanced transaction efficiency and paved the way for the upcoming Tax2Gas implementation. These improvements have bolstered confidence in the project, signaling that Terra Classic is continuing to evolve despite its past challenges.
With faster transactions and more efficient gas fees on the horizon, the Terra Classic network is becoming more appealing to both users and developers.
All in all, today’s bankruptcy hearing could mark a turning point for LUNC, with the planned token burn and technical upgrades positioning the token for potential gains. While risks remain, the stage is set for what could be a pivotal moment in Terra Classic’s journey.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
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