LUNC Network Upgrade Backed By Major Exchanges – Will The Crypto Balloon In Price?

Christian Encila

2 years ago

3 mins read

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Just this January 14th, LUNC just went through its network upgrade that was supported by Binance. The upgrade was due to several developments on-chain.

According to its January 1st blog post, it was because the system of LUNC remints tokens that were burnt for a development fund.

Along with this, the ecosystem would also have an increase in gas fees for better validators and staking rewards in the platform. This would mean that the ecosystem would continuously burn and make LUNC a deflationary currency.

What It Means For LUNC

Luna Classic becoming deflationary would have an effect on the token. But this wouldn’t be enough for the token to have a big move in the short and mid-term. Based on the blog post, this burn rate of the ecosystem would increase as remints would be eliminated.

The proposal also increases the gas fees in the ecosystem, making the usage of the community fund more efficient. Although this may seem bad, Terra Luna Classic’s gas fees are still comparably low compared to Terra 2.0.

Image: CryptoSlate

The proposal was well received by the community. This could be a catalyst for a consistent move upwards as LUNC rides the altcoin rally.

LUNC is the native cryptocurrency of the old Terra network. It was launched in 2018 under the name LUNA, but was renamed LUNC following the Terra disaster.

Long Term, The Key For Gains

Short term, the token is set to break its current upward trend. Volatility is expected to enter the market in the next few days – but then that is not surprising – as the market prices in the burnt tokens.

It is likely, however, that the token would have a respite in the coming days as deflationary forces act upon the token.

As the time of writing, the token’s price is at $0.00017586, a percent discount from yesterday’s price movement, but LUNC also exhibited sizable gains in the weekly and bi-weekly time frame. The token is also currently facing strong resistance at $0.00018073.

LUNC total market cap at $993 million on the daily chart | Chart: TradingView.com

In the short-mid term, the token would revert back to its support at $0.00015726 in the next couple of days or weeks. If the token experiences a pull back in price, the token should have enough momentum to retest the $0.00018073 resistance level.

If the token breaches the $0.00018073 resistance level, it could regain and consolidate above it in the coming weeks to retest $0.0001866 with confidence.

Investors and trader should brace themselves for a bumpy few days as the token experiences volatility.

Long-term, holding LUNC is the best move for investors and traders as the market rides on Bitcoin’s resistance break at $21,000.

Featured image: OpenText Blogs

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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