Terra classic LUNC/USDthe blockchain’s native token, which crashed and burned earlier this year, has been buzzing for the past few weeks.
What happened: LUNC is up 460% from $0.000091 on Aug. 8 to $0.000548 on Sept. 8, according to data from Gasoline Pro. The token is up 14% over the past 24 hours and has gained 13% Bitcoin BTC/USD and 15% above ether ETH/USD.
LUNC also had a massive daily trading volume of $3.8 billion, surpassed only by the market leaders BTC and ETH.
See also: IS TERRA (LUNA) DEAD?
The coin’s price action has been largely attributed to a new one community proposal introduce a burn mechanism for LUNC that would take coins out of circulation. The recently approved proposal would burn 1.2% of the LUNC supply and re-enable the staking mechanism.
While optimism surrounding the new proposal likely led to some positive price action, open interest data shows a number of traders are betting the massive rally will soon be over.
Funding rates for the LUNC/USDT trading pair hit -0.50 on Thursday, meaning short traders are paying long traders to keep their positions open.
Think the LUNC burn trade is about to implode — everyone knows what a musical chairs game is, and momentum just broke.
Binance announcement of not burning CEX volume thins right tail.
5x from the lows in these market conditions means the lift to the downside has a high probability. pic.twitter.com/3OlXXRqFTr
— Light (@lightcrypto) September 8, 2022
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