One of the top performing cryptocurrencies today regarding price action is TerraClassicUSD (USTC), up over 35% in the past 24 hours. While the now-defunct stablecoin is far from its peg of $1, the recent price hike shows the Terra community is rallying behind the original LUNC/USTC pair rather than the new LUNA token.
Terra Classic’s (LUNC) price is up over 18% today, compared to Terra 2.0 (LUNA), which only gained 6% in the past 24 hours. Let’s look at what’s been happening with the two cryptocurrencies and cover any relevant developments regarding the projects.
Terra Classic (LUNC) Valuation More Than Triple That of Terra 2.0 (LUNA)
With the recent price hike for Terra Classic (LUNC), its market cap surpassed $710 million, with a 24-hour trading volume of $238 million. Comparing that to Terra 2.0 (LUNA) market capitalization of $234 million and a 24-hour trading volume of $118 million, we can see a clear winner between the two.
Unsurprisingly, the Terra community chose to rally behind LUNC, as original investors in the Terra Luna project were never fans of forking the network and creating an additional token. The community preferred restructuring LUNC and burning as many tokens as possible to create a bullish upside to the original digital asset.
It seems that the Terra Classic community’s efforts to continue burning LUNC have been paying off in pushing the price of LUNC higher, providing much-needed bullish support.
Forking a cryptocurrency does nothing but segregate the original community, as we’ve seen in the past when it came to forks like Ethereum and Ethereum Classic, Bitcoin and BitcoinSV, BitcoinCash, and more.
Projects Integrating Terra 2.0 Still Support Terra Classic
One of the most significant reasons that Terra Classic is performing so well is because most projects that update their protocol to support the new chain have no reason to suspend support for Terra Classic.
Not only are blockchains interoperable between different networks, but the Terra Classic and Terra 2.0 networks are essentially the same, one only lacking the USTC stablecoin. This means it’s effortless to integrate both the classic and the new chain for any existing and upcoming Terra Luna ecosystem platforms and services. There’s no reason to suspend support for the classic chain while only enabling support for LUNA 2.0.
Terra Luna Ecosystem Continues to Grow
Regardless of which chain is winning the community’s support, the good news is that the Terra Luna ecosystem continues to grow despite the uncertainty in global and cryptocurrency markets.
Valkyrie Protocol, a unique Share to Earn dApp activation protocol designed to help other platforms launch effectively, launched on Terra 2.0 today, further incentivizing the growth of the Terra Luna ecosystem. The protocol will include a new Valkyrie token ($VKR) that will be claimable shortly after launch.
In addition, PRISM protocol, a forward-looking DeFi 2.0 dApp enabling users to split digital assets into yield and principal components, announced the upcoming launch on Terra Luna on July 12th.
Moreover, a top-rated NFT platform on Terra Luna, Knowhere, updated its platform, adding an activity feed feature for their marketplace and individual collections, making it easier to see the stats of sales and traders of NFTs on the platform.
The Terra Luna ecosystem continues to thrive despite unfavorable market conditions. While the Terra Luna collapse was a dark mark in the history of cryptocurrency that won’t be forgotten, the vital factor to consider is the ability of a community to overcome adversities and continue moving forward, focusing on the bright future ahead.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any project.
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