The abrupt rise in the value of Terra Classic tokens over the past forty-eight hours is not unprecedented in the history of the Terra ecosystem. Countless revival initiatives were undertaken on the community-led Terra Luna Classic chain, including the implementation of inter-blockchain communication and burning.
The price of LUNC has increased by 60% as a result of Binance’s perpetual contract launch and strategic investment.
Terra Luna Classic (LUNC) is currently exchanging at $0.00011920 on CoinGecko, with a 24-hour trading volume of $761,944,140.76. This is a 48.28% increase in the last 24 hours and a 55.30% increase in the last 7 days. Terra Luna Classic has a market worth of $691,176,585 with a circulating supply of 5.8 Trillion LUNC.
Binance’s USTC Perpetual Contract
Binance, the world’s largest cryptocurrency exchange, announced on Monday that after careful consideration, it will launch a USTC perpetual contract with up to 50x leverage. The move comes despite a large increase in TerraClassicUSD (USTC) and Terra Classic (LUNC) prices, as Binance expects to open USTC permanent trading today at 12:30 UTC.
According to an official announcement made by Binance on November 27, the funding fee is settled every four hours, with USDT as the settlement asset.
Furthermore, according to the statement, the maximum funding rate of the USTCUSDT Perpetual Contract at the time of introduction is +2.00% / -2.00%. Binance’s Multi-Asset Mode will enable customers to trade the USTCUSDT Perpetual Contract across several margin assets.
The maximum funding rate of the USTCUSDT Perpetual Contract at the time of launch is +2.00% / -2.00% […] The funding fee settlement frequency is every four hours [‘…] Qualified USDⓢ-margined futures liquidity providers will be eligible to enjoy 0.005% maker fee rebates for trades on the USTCUSDT Perpetual Contract for approximately 14 to 15 days.
Binance
The announcement boosted community excitement while also raising speculation about whether it was already known to some investors as the Terra ecosystem tokens experienced quick increases.
LUNC Price action
Luna Classic Labs purchased 25.6 million USTC worth around $500,000 as part of its treasury reserve policy at an average purchase price of $0.021 per USTC, a number of significant proposals supported by the community and strong optimism amid a broader crypto market rebound. Trader QT, a Luna Classic Labs partner, claimed that this is a first investment.
It resulted in a 100% increase in the price of USTC, with the community noticing a break above resistance. USTC experienced another surge as investors poured money into the company. It sparked an uptick in the Terra Classic (LUNC), with traders reporting a significant boost in liquidity and trading volumes.
The price of USTC is now $0.055, bringing the previous day’s gains to 191%. The low and high for the day are $0.015 and $0.068, respectively. In addition, the trading volume has also slid briefly after Binance’s USTC perpetual trading announcement. Market analysts project that LUNC investors will be able to capitalize on the already begun bull rally.
In May 2022, LUNA was launched to sustain the revived Terra network, which had collapsed earlier that month after its algorithmic stablecoin TerraUSD lost its dollar peg. Terra Luna Classic is the original coin that has been renamed.
The Terra ecosystem’s price movement comes only days after a court in Montenegro approved Terraform Labs co-founder Do Kwon’s extradition from the country’s capital, Podgorica.
Kwon, who resigned as CEO after his arrest in March 2023 and left the company entirely in May, is being pursued by authorities in the United States and his home in South Korea on accusations related to the Terra ecosystem’s collapse in May 2022.
