After the infamous crash caused by the TerraUSD or UST stable coin de pegging fiasco in May, Luna Classic LUNC token of the Terra ecosystem is in the news again.
According to CoinMarketCap, the Luna Classic token went up 57.0961 per cent on Wednesday.
The price of the criptocurrency was trading at $0.00008521 in the wee hours of Wednesday and moved to 0.0001533 in the morning. The price of the criptocurrency is 0.0001275, 45.07 per cent up. The criptocurrency has a 24 hour trading volume of $861,021, 302.
On the surface, it may appear that Terra s Luna Classic is making a comeback. In the last month, the criptocurrency crashed to the abyss. The price of the criptocurrency fell by more than 99.99 per cent.
The analysts don't think there's going to be any upside to the coin in the near future, based on sound technical and fundamental analysis.
In May this year, the criptocurrency crashed 100 percent as a result of the UST TerraUSD, an algorithmic stable coin, de-pegging catastrophe.
What is the relationship between Luna Classic and UST?
The adoption of UST as a stable coin is critical to the success of the Terra ecosystem, hence the Luna Classic token and UST are intrinsically linked. When demand for UST increases, Luna Classic backs UST and the token is burned.
The value of the Luna Classic plummets if UST is perceived to be volatile.