Terra Classic price is on the upward with a perfect alignment of several positive announcements adding to the Terra Labs revival plans. All eyes of the crypto industry turned to Luna Classic as it has been breaking records with new price surges for over a month.

Terra Luna classic price is currently floating around $0.0001203 with a 25.16% rise in the last 24 hours. Its market capitalization also rose by 25.17% to more than $698.4 million. If we consider the entire month of November, the price of LUNC increased substantially by 85% from having 4 zeros in its price, $0.00006517, to 3 zeros in the current price.

We will discuss all the factors that led to the current price surge and causing it to sustain in this article. Adding to that, we analyze what the future holds for the twin tokens LUNC and USTC.

Terra Classic in Brief

The Terra Luna ecosystem was doing well in the crypto industry last year. Even when the whole industry was not performing well, Terra Luna’s price went to new heights and reached its all-time high value in April last year. Terra Luna crashed horribly in the following weeks after an unexpected turn of events happened.

Terra founder Do Kwon decided to hard fork the Terra Luna blockchain to start new. While the new blockchain is called Terra 2.0 and its cryptocurrency is called LUNA, the old blockchain remained with its twin cryptos Luna Classic (LUNC) and UST Classic (USTC).

The price of Luna Classic fell over 96% to as low as 10 cents from an all-time high value of $119 in April last year. The fall began when the algorithmic stablecoin USTC lost its US dollar peg. Since both the LUNC and USTC are connected to each other, the fall of one resulted in another, causing the entire ecosystem to collapse.

The price of Luna Classic slightly recovered in September last year for a brief period of time. It followed a long downward trend with slight price spikes every now and then. Recently, the price of Luna Classic is rising significantly as a result of a series of positive happenings.

Why is Terra Classic Price Rising Today?

Terra Luna Classic price has been rising continuously for the past month. It left investors and crypto enthusiasts wondering what are the possible reasons behind it. While investors started to grab LUNC tokens, there is also a question how long the upward trend will continue. Let us discuss all the possible scenarios that led up to the current price surge in Luna Classic.

Bitcoin Price Rally

The ongoing Terra Classic price surge is correlating with Bitcoin’s price rally. The price charts of both LUNC and BTC are going up even though the increase in price is over 25% in the former and 3.29% in the latter. Bitcoin surpassed the $38,000 mark in the last 24 hours. This is huge because the last time BTC was trading at $38k was around 18 months back.

The impact of Bitcoin’s price movements on the overall crypto market is undeniable. Entire crypto market, including Luna Classic, moves in accordance with Bitcoin as its dominance over crypto is currently 52.01%. Thus, one of the sure reasons for LUNC’s price surge is the ongoing price rally of Bitcoin.

USTC Pump Effects

The USTC price is increasing substantially in November 2023 for a multitude of reasons. The USTC price rally gradually started at the end of October 2023. Both LUNC and USTC prices increased by 15% and 12% when 800 million USTC tokens were removed as part of its token burning mechanism. The burn happened after the Terra Classic community voted to blacklist Ozone protocol wallet which contained 800 million USTC.

The second significant price rise happened after a strategic investment in USTC by Terra Classic Labs. USTC price skyrocketed by nearly 300% and rose from around $0.1 to over $0.07.

Trader QT, an official partner at Terra Classic Labs, posted on X that Terra Classic Labs purchased 25.6 million USTC tokens and made the USTC price soar. Since USTC and LUNC are from the same blockchain and have same community, the positive price sentiment rubbed off on Luna Classic, making LUNC price to increase.

Mint Cash Announcements

Mint Cash is a new crypto project based on Bitcoin that enables stable and permissionless payments. It has a similar vision as the Terra Luna Classic community but the ways they are following to realize the vision are different. The project claimed itself to be a spiritual successor of TerraUSD i.e., USTC.

(2/n) then, we will airdrop equivalent amounts of tokens at a valuation of 1 $USTC = $1 (USD) (details may vary)

that’s a whooping 99% discount offer.

— Shin Hyojin 신효진 🏛️♻️ (@shinhyojin1031) November 25, 2023

Shin Hyojin, Mint Cash project lead, posted on X saying they will airdrop tokens for USTC and LUNC token holders. The interesting thing is he said that the airdrop releases tokens at an evaluation of $1USTC = $1 USD.

The post created a buzz in the Terra Classic community and caused the increase in both USTC and LUNC prices. LUNC price has also increased in response to USTC’s price rise as LUNC and USTC tokens are connected.

Please be aware that Terraform Labs is not involved in Mint Cash in any capacityhttps://t.co/7hLOh6MaPY

— Terra 🌍 Powered by LUNA 🌕 (@terra_money) November 27, 2023

Terra Money officially announced that Terraform Labs has no ties with Mint Cash. Though the revelation resulted in a price dump of both USTC and LUNC, LUNC price rose again.

USTC Perpetual Contracts on Binance

Binance announced the launch of USD-M USTC perpetual contracts with a significant 50x leverage. The news came in the middle of ongoing price rallies and increasing positive investor sentiment. Both USTC and Luna Classic rose by 300% and 60% respectively within a few hours. Binance’s announcement added to the ongoing price rally of Terra Classic and caused further increase in its price.

What’s Next For LUNC and USTC?

Terra classic and USTC prices are on a continuous uptrend as of November 2023. The Terra community’s commitment toward reviving the ecosystem makes investors hang on and believe in the project.

Bitcoin price trends will have a clear impact on other cryptocurrencies, including LUNC. Its present upward price movements show positive signs and could cause further increase in LUNC price. The hype around Bitcoin ETF approvals and upcoming Bitcoin halving event have the potential to take BTC above $40k in the upcoming months. And, if Bitcoin’s price improves, so will the price of other cryptocurrencies and Luna Classic.

We cannot estimate Luna Classic’s price movements solely based on the Bitcoin price. If the overall crypto market performance combines with the Terra Classic project developments and revival plan implementations, we can definitely expect LUNC’s price to reach new heights.