Terra Classic (LUNC) is currently facing a significant decline in its total value locked (TVL) on the network. Recent attempts to align Terra Classic with other crypto projects and blockchains have failed to reverse its downward trend, leading to the lowest TVL levels since its launch.
TVL Plummet: A Gloomy Outlook for Terra Classic
According to data from decentralized finance (DeFi) analytics platform Defi Llama, Terra Classic’s TVL has dwindled to a mere $2.09 million in staking value, representing a record low.
This sharp decline in TVL marks a significant setback for the underlying blockchain, which experienced a staggering TVL of $20.49 billion back in May 2022. The collapse of LUNA and TerraUSD (UST), coupled with mass withdrawals, caused a drastic reduction in TVL. Notably, Terra Classic’s staking value has plummeted by 63.87% in 2023 alone.
Falling Behind Prominent Crypto Assets
Terra Classic (LUNC) current TVL pales in comparison to that of other prominent cryptocurrencies. Solana (SOL), for instance, boasts over $300 million in staking value, which is more than 150 times higher than Terra Classic’s meager TVL. Likewise, Cardano (ADA) currently records a TVL of $179.12 million, nearly 85 times larger than that of Terra Classic.
At the time of writing, Terra Classic is trading at $0.0000781. While it has experienced a modest 1% gain in the past 24 hours, the cryptocurrency faces a decline of 2.32% over the previous seven days, according to CoinMarketCap. These figures highlight the challenges that LUNC has been grappling with in recent times.
Efforts to Revive Terra Classic Falling Short
In July, Terra Classic’s core developer group, the Joint L1 Task Force (L1TF), shared plans to reduce the circulating supply of LUNC and stablecoin TerraClassicUSD (USTC) through the burning of LUNC by validators.
Meanwhile, Binance, the world’s largest crypto exchange, announced its support for the Terra network upgrade. However, despite these developments and the proposal for revival put forth by the anonymous “Six Samurai” group of blockchain developers, Terra Classic’s staking values have continued to collapse unabated.
The declining TVL of LUNC raises concerns about the cryptocurrency’s long-term viability, necessitating a reassessment of its current trajectory. It remains to be seen whether the ongoing efforts to revive the ecosystem will be able to turn the tide in Terra Classic’s favor.