Terra Classic's Community Burns Ignite 195% LUNC Surge

LUNC, the native token of Terra Classic, experienced a dramatic 195% price surge within 24 hours, reaching $0.0001182 as of the latest data . This volatility follows a series of technical upgrades, token burns, and shifting market sentiment within the Terra Classic ecosystem. The price breakout occurred after the token surpassed a critical resistance level at $0.00009554, signaling renewed bullish momentum . Analysts attribute the surge to a combination of on-chain activity, community-driven initiatives, and strategic interventions by major exchanges.

A key catalyst was Binance's execution of a large-scale token burn on October 1, 2025, which removed 356.5 million LUNC tokens from circulation. This action, representing 50% of September's trading fees, added to a cumulative total of over 415 billion tokens burned since 2022 . The burn contributed to a short-term price rally of approximately 8% immediately after the event, with LUNC trading volumes rising 15% to $32 million in the following 24 hours . Community members praised the move on social media, though some expressed concerns about the scale being smaller than previous months due to reduced trading activity.

Technical analysis further supports the recent bullish trend. A Golden Cross formation on the daily chart-where the 13-day moving average crossed above the 49-day line-confirmed a potential reversal in LUNC's price trajectory . Additionally, the Chaikin Money Flow (CMF) indicator showed positive inflows, with a reading of 0.08, reinforcing investor confidence. The price breakout above $0.00009554 has turned this level into a support zone, with analysts projecting further gains toward $0.00012000 and $0.00015000 .

The Terra Classic community has also been active in stabilizing the ecosystem. The v3.5.0 upgrade on August 15, 2025, reactivated the Market Module to enhance LUNC-USTC stability, with historical precedents suggesting such upgrades can trigger significant price surges . Binance temporarily halted LUNC deposits and withdrawals to support the upgrade, which included optimizations to transaction speed and validator incentives. While the immediate impact on price was muted, the upgrade laid the groundwork for improved network efficiency and potential increased adoption.

Despite these positive developments, challenges remain. LUNC's trading volume has fluctuated, with some reports indicating difficulties in liquidity due to regulatory changes like the EU's MiCA framework, which excluded USTC from stablecoin classifications . Additionally, the token's total value locked (TVL) remains below $1 million, highlighting the need for broader utility beyond speculative trading.

The price surge underscores the resilience of Terra Classic's community-driven governance model, which has prioritized deflationary mechanisms and on-chain improvements. However, sustained growth will depend on overcoming structural issues such as low TVL and regulatory uncertainties. For now, the 195% price swing reflects a combination of technical momentum, strategic burns, and renewed interest in the protocol's long-term potential.