why has the LUNA price more than tripled over the past two weeks?

About a week after Terra Classic’s LUNC spike, Terra 2.0’s LUNA soared to the point of tripling its price. A sudden and curious rise which should be difficult to hold in the long term.

The price of LUNA has soared

After a perpetual stagnation around 2 dollars that began on June 9, Terra’s LUNA recently observed a considerable increase without there seeming to be any real rational explanation.

Indeed, on September 9, the price of the LUNA exploded, from $2 to $7.6 within 3 hours, constituting almost a 300% increase.

LUNA token price

A rise that echoes the recent rise of LUNC, the Terra Classic blockchain token, which has saw its market capitalization triple within a week.

An increase due to recent network updates, and more specifically the recent implementation of a 1.2% burn-on-chain on all transactions aiming to make LUNC a deflationary token in order to boost its value.

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Today, the LUNC is in the hands of its communitywhich is notably made up of the LUNC DAO group, which has worked to implement solutions for a massive token burn.

A community that seems truly attached to the original ecosystem, considering the monumental descent of the LUNC which has experienced a highest price (ATH) of almost 120 dollars last April.

As proof, Terra (LUNA), or Terra 2.0, still under the aegis of Do Kwonseems to struggle to arouse the interest of the public, so much so that the LUNC has a greater capitalization.

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A rise without a real economic driver

As some people have pointed out, no news not having really been able to influence to this point the course of the LUNA did not emanate from Terra 2.0.

“Looks like degen casino season is back. The LUNA has climbed 130% over the last few hours without any announcement. »

However, this could be a delayed effect of the recent airdrop of 19.5 million Luna tokens aimed at network users who were not able to benefit from the first airdrop following the fork.

According to analytics tool LunarCrush, the LUNA token buying momentum appears to have been largely encouraged by social media :

LUNA social networks

LUNA Chart – Price (in green), Mentions (in orange) and Engagement (in blue)

Whatever it really is, however, it seems to be with a momentary momentum. Indeed, the day after the LUNA pump, the capitalization of the token exceeded the symbolic threshold of one billion dollars, but the latter is today increased to $800 million.

The total latched value (TVL) of the network currently displays $47 millionfar from the 21 billion peak reached by the original blockchain at the beginning of May 2022.

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Source: Lunar Crush

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