Defunct Terra Tokens Soar 70% Amid Bitcoin Ties and Burn Program

• Impressive Performance of Tokens Linked to Terra Ecosystems
• Understanding the Terra Ecosystems
• Triggers for Rising Values
• USTC Revamp and LUNC Burn Scheme
• Revival Plan for Terra Classic
• Terra Network's Collapse

Impressive Performance of Tokens Linked to Terra Ecosystems

In recent times, numerous tokens connected to the dual Terra ecosystems - Terra 2.0 and Terra Classic - have recorded a more than twofold increase. This has carried the year-to-date rise to an astonishing 10,000%. Such results have positioned this as potentially one of the most successful instances of project recovery in the crypto market. Luna Classic (LUNC), Terra 2.0 (LUNA), and TerraUSD Classic USTC have experienced rises of up to 70% in the last 24 hours, leading to weekly gains reaching over 300%. CoinGecko data indicates that the cumulative trading volumes have surpassed $2 billion.

Understanding the Terra Ecosystems

Terra Classic is the preliminary network established by Terraform Labs. Unlike the forked version, Terra 2.0, which was developed following Terra's collapse, Terra Classic has continued as a separate blockchain. LUNA of Terra 2.0 is now actively traded in the market alongside Terra Classic's LUNC and USTC original tokens.

Triggers for Rising Values

The upsurge in values can be attributed to various catalysts. For instance, Terraform Labs last week announced that it had invested $15 million in two projects within the Terra ecosystem to boost liquidity. This move has made specific trading pools on those platforms more appealing for on-chain traders.

USTC Revamp and LUNC Burn Scheme

In the previous month, Mint Cash, a Bitcoin$42,260 -0.64%-centric payment project, disclosed its plan to revamp USTC. This strategy would utilize bitcoin (BTC) to support the intended dollar-peg stability. Furthermore, an airdrop plan for LUNC and USTC holders was proposed. In the meantime, crypto exchange Binance has been executing a burn scheme that indefinitely eliminates LUNC from the circulating supply based on transactional fees earned through LUNC trading pairs.

Revival Plan for Terra Classic

In June, a group of six engineers self-styled as the "Six Samurai" suggested a revival strategy for the Terra Classic ecosystem. This included a terraUSD testnet for trialing financial services, an application for generating yield for token holders, and a plan to reward developers based on the user activity generated by their applications.

Terra Network's Collapse

Worth noting is the infamous collapse of the Terra network in May 2022, headed by Do Kwon. A failure in backing the algorithmic stablecoin terraUSD (UST) led to a 99% fall in the value of Terra's LUNA and UST tokens in the subsequent weeks.

Edited by Jonathan Stoker