Here’s What Could Be Next for Terra Classic After Recent Gains

Terra Classic (LUNC), a project that has struggled with volatility and missed out on much of the 2024 bull market, has shown notable progress in recent weeks.

Despite the challenges following the collapse of Terraform Labs (TFL) in 2022, the community-driven initiative has been gaining momentum, with LUNC posting significant gains.

This surge comes as a result of several positive developments for Terra Classic. One of the key moments was the court’s approval of Terraform Labs’ bankruptcy plan, which included an agreement with the SEC to settle crypto claims after creditors are paid. This decision was expected, as reflected by a small price bump before the hearing. Additionally, a massive burn of 137 billion tokens in early November, the largest in LUNC’s history, helped reduce the supply, creating a deflationary effect that likely contributed to the price movement.

Overall, the broader crypto market has been positively impacted by political developments, such as growing optimism surrounding Donald Trump’s potential re-election and the anticipated resignation of SEC Chair Gary Gensler. These events have led to substantial gains for Bitcoin and Ethereum, and have also fueled the rise of other cryptocurrencies, including XRP, which has seen impressive growth.

However, despite this recent rally, Terra Classic’s future remains uncertain. LUNC is notorious for its volatility, and concerns about its staking and minting mechanisms continue to linger. Additionally, the association with one of the most significant scandals in crypto history, which contributed to the “crypto winter,” suggests that this rally might be more about the overall market’s renewed optimism rather than a fundamental shift in confidence in Terra Classic’s long-term prospects.