Terra Classic (LUNC) has emerged as one of the most talked about digital tokens in the crypto sphere. Notably, the coin’s impressive run over the past few weeks has significantly drawn attention.
In the past week, LUNC recorded an impressive increase of about 74% in market value. It also registered maximum and minimum prices of $0.00027189 and $0.00011393, respectively.
Read Also: LUNC to $1: Edward Kim Ramps Effort to Launch AI project Supporting LUNC Burning
Apart from rejuvenating users’ interest, the remarkable market statistics have also reignited the coin’s highly speculated potential to reach the $1 price level.
While the speculation for Terra Classic achieving a $1 price level continues to grow stronger, with each passing day, it is unlikely that a $1 price level will play out soon. This insight shall reveal pragmatic impedances to LUNC’s potential $1 price ascent.
LUNC to $1? Relatively Unattainable Market Cap
LUNC attaining any significant price high will have considerable effects on other market variables, especially the market capitalization.
For context, the market capitalization for any digital asset in the crypto sphere is obtained by multiplying the coin’s selling price with its circulating supply.
Taking cognizance of Terra Classic’s 5,843,805,750,442 tokens in circulation and a projected $1 selling price, performing a similar calculation would bring over a $5.8 trillion market cap, which is certainly not happening anytime soon.
Meanwhile, during the rally that orchestrated LUNC’s ascent to attaining an all-time high (ATH) of $119.18 in April 2022, LUNC’s market capitalization soared to about 40.99 billion. At that time, the circulating supply was in millions of dollars, unlike now.
Intriguingly, Bitcoin’s market cap at its ATH of $69,000 was relatively $1.27 trillion; this goes a long way in explaining why it is tricky for LUNC, which is currently ranked 58th in the market, to achieve a market capitalization of over $5.8 trillion.
We are on twitter, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) July 15, 2023
Read Also: Binance LUNC Burn Drops 43%, Records Below $1 Billion Terra Classic Burn For the First Time
LUNC to $1? Only If Tons of Terra Classic Tokens Are Burned
Barring any significant changes, the only pragmatic means for LUNC to achieve such a substantial price level is by investing heavily in its burn projects.
A drastic reduction in the LUNC’s massive circulating supply makes it possible to achieve a realistic market cap, with LUNC selling at $1 or beyond.
Notably, the Terra Classic development team is not sleeping on the need to improve on LUNC burn projects. Several proposals have been made in this regard which also included incinerating its stable USTC coin.
Binance remains the most significant contributor to LUNC’s incineration scheme, with over 40 billion tokens incinerated so far.
Follow us on Twitter, Facebook, Telegram, and Google News
