Terra Classic's price has soared by 250% in September

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Terra Classic's price has soared by 250% in September

The hype surrounding the Terra Classic crypto staking service and the new token “burn” feature helped fuel the rise of LUNC. The dual collapse of UST stablecoin and LUNA cryptocurrency was considered by many to be partially responsible for the entire crypto market crash in May, which resulted in cryptocurrency liquidations and significant price declines.

But the relaunched LUNA and rebranded Luna Classic (LUNC) have surged in the past few days, surpassing all the top-ranked cryptocurrencies to date in early September.

Terra Classic outperformed the crypto market

The price of the token jumped more than 250%, reaching $0.000594 on September 8, the best level ever recorded.

In the same period, Bitcoin (BTC) fell 4%, and Ether (ETH) gained only 3.5%. Profits in the Terra Classic market emerged despite its association with the defunct Terra Token (LUNA), a $40 billion project that collapsed in May.

Terra Classic is a rebranded version of the same Terra project and as such has been the subject of skepticism from analysts and investors since its inception. But traders have ignored such warnings in recent weeks.

Staking service

The new staking service went live on the Terra Classic chain on August 27 and was the first major sign of the ongoing rise in the LUNC price.

According to LuncStaking_Bot, users have staked more than 610 billion LUNC with Terra Classic against its net supply of 6.9 trillion units. Before the crash itself, there were about 300 million Luna in circulation. In other words, almost 9% of the total supply of LUNC was removed from circulation.

Data from StakingRewards shows that Terra Classic staking returns users with an annual return of 37.8% and is among the highest payouts in the crypto industry. Higher yields may have played a key role in increasing demand for LUNC, which has seen the token price increase by more than 450% since the launch of the staking service.

LUNC token burn

In addition to staking, the developers of Terra Classic also introduced a token-burning mechanism to increase the scarcity of LUNCs. Terra Classic community member Edward Kim proposed a 1.2% transaction tax on all LUNC transactions in early September.

Interestingly, there is already a LUNC burning mechanism that has permanently removed more than 3.6 billion tokens from circulation. By all accounts, the chances of Luna reaching $1 are almost non-existent. What do you think?