At a current price of $4.17 per coin, LUNA has dropped a total of 38% from its Friday peak of $6.72

Almost a week ago, Terra LUNA had a positive run-up for four straight days and the crypto token surged 247% early on Friday. Market watchers thought that the concept of the tax proposal to reduce the supply of LUNA may have sparked a rally in the token. But while the token has picked up massive value over the last week, the ascent has stopped; now it's down by more than a third from its recent peak.

At a current price of $4.17 per coin, LUNA has dropped a total of 38% from its Friday peak of $6.72, per data from CoinGecko. That price was the highest price seen for LUNA since June 1, shortly after the second-generation coin launched and was airdropped to holders of the previous LUNA cryptocurrency, which has since been renamed LUNA Classic (LUNC).

Following the Terra ecosystem collapse, the community put out several solutions to save it. One of these was the adoption of Proposal 1623, which resulted in the creation of a new chain and the launch of an airdrop of new tokens for Terra ecosystem users.

The original Terra Chain was renamed Terra Classic, and on May 28, 2022, the genesis block of the new chain was launched to handle future transactions under the name Terra (LUNA). The original native token was likewise renamed LUNA Classic (LUNC).

David Gokhshtein, founder of Gokhshtein Media and crypto influencer and enthusiast, however, believes that LUNC, which is presently seeing a revival after the Terra network imploded, is being bought by gamblers who want to make big bucks. He also likened LUNC to a lottery ticket, as with the old children's game musical chairs.