LUNC outperforms Bitcoin and Ethereum over the last 30 days. The token traded for as high as $0.00031131 during the week before losing some of the gains. As of press time, it is trading at $0.0002604. Regardless of this, LUNC is one of the best-performing cryptocurrencies in the prevailing bear market. Since its historical implosion in May, the asset has risen by over 25,000% during the last four months. For context, Bitcoin has shed over 13% of its value during the last 30 days while Ethereum has lost roughly 4%, despite the enthusiasm surrounding the merge. Experts believe that the reason why LUNC Outperforms Bitcoin is because of Do Kwon's arrest warrant.
A South Korean court has issued an arrest warrant for Do Kwon, the founder of blockchain platform Terraform Labs, which is linked to a failed crypto-currency, a spokesperson for prosecutors said on Wednesday. Global criminal police organization Interpol has put out an alert known as a Red Notice to help locate and arrest Terraform Labs co-founder Do Kwon, wherever he may be. Terra's ecosystem fell apart earlier in 2022. Charges were brought against Kwon in South Korea for his involvement in the Terra project. Kwon has tweeted that he is not hiding. He was thought to be in Singapore, although Reuters reporting has indicated a possible location change. Authorities in South Korea have also taken steps to freeze funds reportedly associated with Kwon.
LUNC is the token of the now infamous Terra blockchain, which imploded in May and subsequently prompted lawmakers to consider a ban on similar algorithmic stablecoins.
The world's largest crypto exchange, Binance, announced on Monday plans to cut the token's supply. "Binance will implement a burn mechanism to burn all trading fees on LUNC spot and margin trading pairs by sending them to the LUNC burn address," the exchange wrote.
At the time of writing, LUNC is priced at $000275 and went through a 1.4% decrease in the last 24 hours. The current market cap stands at $1.9 billion. In August, Terra Classic outperformed the vast majority of the crypto market and brought nearly 500% profits to summer investors.
For almost two months, LUNC has been able to maintain the $0.00016 range but is now struggling to once again reach the $0.0003 target. But even if it does reach it, will it be able to maintain it? Some experts believe that it will that's why they prefer LUNC over Bitcoin.
The main reason for this is the latest announcement from Binance that stated that the platform would start supporting Luna Classic's burning mechanism. Analysts took this as a bearish signal.
Furthermore, the CEO of Binance has stated that the platform would also burn LUNC/BUSD and LUNC/USDT spot and margin trading fees.
Fees will first be converted into LUNC tokens and then forwarded to the primary burn address. This means that Binance will cover all the expenses, not the users on the platform.
The crypto community believes that this information will prompt LUNC into another bullish trend that will increase the price per LUNC token to $0.000362, breaking the $0.00035 resistance for good.
If Terra Classic continues to build on this sentiment, it might even end 2022 somewhere around the $0.0005 mark.
As for 2023, if the crypto market starts steadily recovering, we can expect most cryptos to bounce back to their feet, including LUNC.
However, Luna Classic will have a much harder time reaching any bigger heights considering the controversies that still surround it.
If the token somehow manages to regain investor trust, there's a possibility that it could end in 2023 for $0.0013.
The long-term price (for 2024 and 2025) is harder to determine considering that it's very likely that Terraform Labs will start focusing only on the Terra 2.0 project.
Some platforms suggest that LUNC could climb back to $0.008 in a few years, but nothing is guaranteed.
The raising price of LUNC and the stumbling state of Bitcoin are making it easy to understand why LUNC Outperforms Bitcoin and other cryptocurrencies.
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