Terra Classic (LUNC) chances of revival diminish, here’s why
Terra Classic (LUNC) chances of revival diminish, here's why
The Decline of Terra Classic: A Road to Recovery?
Terra Classic (LUNC), once a soaring blockchain network, has been experiencing persistent declines since its collapse in 2022. These declines have been seen across various aspects, such as the price of LUNC tokens and the network’s Total Value Locked (TVL). Despite enthusiastic efforts by the community to restore the network to its past glory, the numbers indicate a low possibility of recovery.
Terra Classic TVL Hits All-Time Low
Following the crash in 2022, Terra Classic lost a significant portion of its TVL, primarily due to investors pulling out funds and developers migrating their decentralized applications and protocols to other networks. A period of relative stability ensued, but the network has once again fallen behind its competitors.
According to data from the on-chain tracker DeFiLlama, as of the latest update, the total TVL of Terra Classic (LUNC) sits at a mere $2.11 million, which marks the lowest point ever recorded for the network’s TVL. This is a stark contrast to Terra blockchain’s all-time high TVL of over $20 billion prior to its tragic collapse.
LUNC TVL falls to new all-time low | Source: DeFiLlama
- Metaverse Platform Sandbox transferred out 60M SAND ahead of Monday’s $133M token unlock.
- Bittrex settles with SEC, pays $24M fine.
- BitKeep changes name to Bitget Wallet after acquisition.
The majority of the remaining TVL is concentrated in just two DeFi protocols: Terraswap and Astroport Classic, with $1.07 million and $933,527 in TVL, respectively. A glimpse of hope was seen in April 2023 when Terra’s TVL briefly reached $12 million, but since then, it has plummeted by over 83%. Additionally, the lack of decentralized exchange (DEX) volumes over the past week indicates a virtual halt in trading activity on the network.
The Road to Recovery for LUNC
In the past year, the Terra community has made consistent efforts to facilitate the network’s recovery. However, recovering from the crash-induced decline is an uphill battle and close to impossible. Compounding the challenge is the near absence of network activity, which further diminishes the chances of recovery.
One of the major obstacles hindering LUNC’s recovery is the ballooning supply of over 6 trillion coins. With such an astronomical supply, even a surge to the $1 mark seems out of reach unless a significant reduction in supply occurs.
At present, LUNC’s price continues to struggle at a mere $0.00007746. Its market capitalization stands at $450 million, ranking it as the 80th-largest cryptocurrency by market cap.
LUNC price trading over 99% below all-time high | Source: LUNCUSDT on Tradingview.com
In conclusion, Terra Classic’s path to recovery is fraught with challenges. The collapse in 2022 severely impacted the network’s value and functionality, leading to the loss of a substantial TVL. Despite the unwavering efforts of the community, the current state of LUNC indicates a bleak outlook. Addressing the excessive coin supply and revitalizing network activity are crucial steps towards rebuilding trust and reinvigorating the Terra Classic blockchain.