Cryptocurrency markets are showing bullish momentum this Memorial Day, as Bitcoin and Ethereum are up 3.6%, holding their current support levels of $30k and $1.8k. Surprisingly, both LUNC and LUNA show significant price growth, with the Terra Classic token up over 74% and LUNA 2.0 up over 11% in the past 24 hours. Let’s look at what’s been going on with the two LUNA tokens and see why the price is rising.
Why Is Terra Classic (LUNC) Price Rising?
The massive LUNC price pump this Monday is likely because the hashtag #LUNC is trending in the United States on Twitter with over 41.5k tweets.
For those part of the Terra Luna community who disagree with Do Kwon and the new chain launch, joining the Luna Classic (LUNC) side only makes sense.
One of the most popular proposals by the Terra Classic community is to burn as many LUNC tokens as possible to lower the currently overinflated supply of 6.5 trillion LUNC tokens, which can significantly increase the unit price of each token.
As mentioned in our yesterday’s Terra Luna article, the primary exchange currently burning a significant portion of LUNC tokens is MEXC, which over the past three days managed to burn over 207 million LUNC, roughly $28k worth of tokens.
While this may not seem like much if other exchanges follow suit and manage to burn a few billion tokens, that could significantly impact the Terra Classic token circulation and reduce its supply to where the price would feel an effect.
Why Is Terra 2.0 (LUNA) Price Rising?
One potential reason for the recent price hike for LUNA is the upcoming Binance listing scheduled for May 31st. According to an announcement published on May 28th, Binance will list Terra 2.0 (LUNA) in its innovation zone and open trading for the LUNA/USDT and LUNA/BUSD trading pairs.
For those unfamiliar with Binance’s innovation zone, it’s a dedicated trading section of the exchange where users can trade new tokens with increased market volatility and uncertainty.
Users must accept the Binance Term of Use to start trading in the innovation zone and acknowledge that any tokens traded in the section could pose a higher-than-normal risk for losses.
So far, the top exchange by trading volume for LUNA/USDT is KuCoin, accounting for over 40% of the volume for the new token, with the current 24-hour trading volume of over $63 million at writing. KuCoin is followed by Huobi Global with $20 million and Gate.io with $17 million in 24-hour volume for LUNA.
Today is a global holiday, and we still have no updates from either the official Terra Luna Twitter account or Do Kwon, Terra’s Founder. However, since both Bitcoin and Ethereum are showing slight bullish momentum, it is no surprise that the two LUNA tokens are also pumping.
Terra Classic (LUNC) is currently trading at $0.0001363, with a 24-hour trading volume of $275 million and a market capitalization of $891 million.
Terra Luna 2.0 (LUNA) is currently trading at $6.44, with a 24-hour trading volume of $146 million and a market capitalization of $1.3 billion.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency.
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