Cryptocurrency markets are showing bullish momentum, with Bitcoin and Ethereum prices up 3.6%, while maintaining current support levels at $30,000 and $1,800. Surprisingly, both LUNC and LUNA are showing significant price growth, with Terra Classic tokens up over 74% and LUNA 2.0 up over 11% in the past 24 hours.
Why is the price of Terra Classic (LUNC) rising?
The massive price hike for LUNC on Monday is likely due to the hashtag #LUC “trending” in the US on Twitter with more than 41.5K tweets.
For members of the Terra Luna community who disagree with Do Kwon and launch the new channel, joining the Luna Classic (LUC) side only makes sense.
One of the most popular offers from the Terra Classic community is to burn as many LUNC tokens as possible in order to reduce the currently inflated supply of 6.5 trillion LUNC tokens, which can dramatically increase the unit price per token.
The main exchange that is currently burning a significant portion of LUNC tokens is MEXC, which in the past three days has managed to burn more than 207 million LUNC, or about $28,000 in tokens.
While it might not seem like much, if other exchanges follow suit and manage to burn off a few billion tokens, it could have a huge impact on Terra Classic token trading and reduce the supply to such an extent that the price will suffer.
Why is the price of Terra 2.0 (LUNA) soaring?
One possible reason for the recent price hike of LUNA is the upcoming listing on Binance scheduled for May 31. According to an announcement on May 28, 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 who are not familiar with the Binance innovation zone, it is a dedicated trading section of the exchange where users can trade new tokens with increased market volatility and uncertainty.
Users must agree to Binance’s terms of service to start trading in the innovation zone and acknowledge that any tokens traded in the section may have a higher than normal risk of losing.
To date, the highest exchange by volume for LUNA/USDT is KuCoin, which accounts for more than 40% of the volume of the new token, with a current 24-hour trading volume of over $63 million in writing. KuCoin is followed by Huobi Global with $20 million and Gate.io with $17 million over 24 hours for LUNA.
There is still no news from Terra Luna’s official Twitter account or from Do Kwon, Terra’s founder. However, with Bitcoin and Ethereum showing slight bullish momentum, it is not surprising that the LUNA tokens are also up.
Terra Classic (LUC) 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.
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