Following the downfall of Terra (LUNA) and its subsequent relaunch as LUNA 2.0, the platform’s original chain, which is presently working under the name Terra Classic (LUNC), is garnering an incredible amount of attention among crypto traders.
CoinMarketCap statistics indicate that Terra Classic is the second most-searched cryptocurrency on the site as of June 7th out of all the cryptocurrencies after LUNC was the most digital asset earlier on June 3rd.
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More also, interest among investors is highlighted by the overall number of the unique addresses that hold assets in the network in the last month; on May 9th, there were 1,642 holders compared with 10,266 on June 5, reflecting an increase of 525.21% in just under a month.
Significantly, the number of LUNA holders dramatically rose on May 14th, after the Terraform Labs ecosystem collapsed, causing major losses for investors of both its stablecoin TerraUSD (UST) and native token LUNA.
Terra Classic price decline
Even though more individuals are searching for and holding LUNC, the cryptocurrency’s price proceeds to record major corrections. At the Writer’s time, Terra Classic was trading at $0.00007129, a decline of roughly 15% in the past 24 hours.
The demand in Terra Classic would imply that investors still feel the asset has a glimmer of hope in the crypto market after the Terra ecosystem crashed when its algorithmic stablecoin de-pegged from the dollar.
In addition, several other crypto exchanges proceed to give the Terra Classic token. For instance, the cryptocurrencies LUNA 2.0 and LUNC may now be traded thanks to the instant crypto exchange tool ChangeNOW.
It is also important to note the restoration of the Terra ecosystem got off to a rocky start as LUNA 2.0 had a major price correction within an hour after its introduction. Even though the market as a whole is experiencing price correction, LUNC is one of the stand-out situations with very price fluctuations. Analysts think that the token’s lack of a clear intrinsic value is one of the factors contributing to its volatility.
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Given the strong demand, it is reasonable to conclude that investors looking for Terra Classic are gambling on the possibility that the token may evolve into a meme currency in absence of a use case for the token.
A couple of weeks ago, Crypto journalist Zach Guzmán, acknowledging the ability of the ecosystem to attract developers, tweeted, “The reason why I focused so much on Terra was that it set out on a mission that had taken down every player before it. Still, it attracted an incredibly talented dev community who built some incredible products unrelated to what failed. For them, I hope.”