Terra Classic (LUNC), the original chain left behind after the Terra Luna/UST collapse, has given a glimmer of hope to investors over the past few days. LUNC went into an uptrend amid heightened market uncertainty and bearish investor sentiment.
The token has registered impressive gains over the past few days, leaving one to wonder about the reason behind such improvement.
At the time of writing, LUNC price has increased by 0.71% in the last 24 hours and 16.95% over the past seven days.
High Buying Pressure Pushes LUNC Price Amid Bearish Sentiments
The increased activities on the Terra Classic network are seemingly one of the factors behind LUNC’s recent price gains. Based on Coinmarketcap data, LUNC’s market capitalization and trading volume have gained 17.75% above yesterday’s value.
Related Reading: ApeCoin Holders Suffer Financial Pain As 95% Endure Negative Returns
Although the price surge momentum has reduced slightly, LUNC remains among the top cryptos by trading volume. LUNC’s price increase has secured it a place among top cryptocurrencies in terms of trading volume.
Other Notable Factors Behind LUNC Price Gains
The price surge followed after the LUNC Burn Army shared news of the v2.1.0 upgrade proposal on June 3. The proposal’s governance vote started on June 7, while the upgrade will go live on June 14. This development generated a buzz in the LUNC community, attracting more attention to the LUNC token.
The v2.1.0 upgrade is one of the biggest events in the Terra Classic community. It aims to bring LUNC to parity with other blockchains, including Terra 2.0 and Cosmos chains. This parity will allow developers and projects to resume building on the Terra Classic Chain.
The v2.1.0 upgrade adds new features and improvements to Terra Classic, including allowing a minimum of 5% commission for validators aimed at promoting fair compensation.
Also, it comes with Cosmwasm and two other security updates touted to improve the ecosystem’s security and reliability. Furthermore, the soon-coming upgrade will bring several notable changes to the Terra Classic ecosystem. The WasmVM upgrade will introduce multi-chain interoperability, extending Terra Classic’s capabilities.
Community-focused Improvement Initiatives
Besides the v2.1.0 upgrade, several other community-backed initiatives are responsible for LUNC’s recent price boosts and trading volume increase. Among these is the token burn initiative, which enhances the network’s utility.
Furthermore, on June 6, the LUNC Burn Army introduced the Bug Bounty Incentive Program to foster application functionality, enhanced security, and network resilience. The Bug Bounty initiative aims to compensate ethical hackers, security researchers, and developers who identify and report security vulnerabilities.
Moreover, the recently introduced LUNC burn initiative that saw over 1 billion LUNC tokens wiped from circulation is among the factors boosting the token’s price. These improvement proposals have helped to increase investor interest in LUNC and are among the drivers of the current price surge.