Terra (LUNA)’s price tripled within a few hours on Friday – up almost to $7 from less than $2, trading close to its all-time high set in early June when the token was introduced.
At the time of writing this article, Terra was trading at $5.97 and has gained 201.32% in the last 24 hours as per CoinMarketCap. The token has seen vastly higher trading volume in recent days. Its collapse in May wiped out $60 billion in value. It also led to investigations into Terraform Labs and its founder Do Kwon. The Terra blockchain was rebranded to Terra Classic and now hosts the stablecoin USTC and luna classic (LUNC) token.
Risky assets recorded a relief rally on Friday as multiple economic indicators suggest a slowing global economy. As such, traders are looking at the possibility that the Federal Reserve might slow down rate hikes sooner than expected, or cut interest rates in 2023. Traders are keen on LUNC as a new burn scheme would reduce the token’s hyper-inflated supply. But market watchers are also puzzled about the token’s wild price movement. They said there hasn’t been any news or development specific to the LUNA network that would trigger hype amid retail traders.
LunarCrush, a digital asset intelligence platform, highlights to a retail speculative frenzy with a surge in engagements on social media platforms. But the new Terra blockchain has been struggling to attract investors.