Understand What’s Behind Altcoin’s 21% Increase

Terra Classic (LUNC) has been the most prominent altcoin in the cryptocurrency market for the past seven days. That’s because he peaked at 21% in that period. But what makes cryptocurrencies so successful?

Terra Classic, one of the hottest cryptocurrencies of 2022, has gained a negative spotlight for being involved in one of the biggest scandals in the history of the blockchain market. . In just a few hours, his previous LUNA went from $119.18 to less than $0.01.

The drop came as billions of tokens were created to hold the peg losses of USTC, Terraform Labs’ algorithmic stablecoin. Unfortunately for Do Kwon’s imperial token holders, the attempt failed and both altcoins lost almost all of their capital.

This has created a great deal of distrust in the crypto market for altcoins, especially Terraclassic. can.

For example, in early October, Terra Classic was up 22% in seven days as Binance charged all fees for LUNC trading from September 21st to October 1st.

About $1.8 billion in tokens have been burned, according to the cryptocurrency exchange. This equates to his LUNC 5.8 billion at the time.

But what is behind the current increase in LUNC?

One of the main catalysts for the current growth of altcoins is Binance. Major cryptocurrency exchanges have announced the completion of the second round of airdrops for LUNC and USTC holders.

As one of the biggest players in the industry, investors see Binance’s steps towards LUNC favorably as they continue to show support for the project even after the May crash.

Additionally, Proposition 10,983 has been obsoleted by the altcoin community. In other words, the proposal focused on increasing the community pool from 10% to 50%. In addition, we will reduce the incineration tax to 0.2%.

The proposal could help Terra Classic raise more money, but could keep Binance out of the burn. This is the key to keeping LUNC out of circulation. This worried the community, who decided to vote to approve Proposition 11.111, which would repeal the previous recommendation.

What do you expect from Terra Classic in the future?

It is important to highlight that cryptocurrencies have lost confidence in the market by losing 100% of the all-time highs seen in April 2022 despite their impressive rise. Additionally, Terra Classic has no real use case.

Everything that altcoins do already exists in other cryptocurrencies. Token burn has proven ineffective for altcoin pricing, and the BNB story proves this.

In this sense, LUNC is proving to be one of the riskiest cryptocurrencies for new investors and one of the best bets for experienced investors looking to profit from the announcement on altcoins. doing.